Included Health, a navigation and virtual care company, announced Tuesday that it plans to acquire Firefly Health, a primary care and health plan provider.
San Francisco-based Included Health provides virtual and in-person care, navigation and care coordination and 24/7 support for clinical and administrative needs. Firefly Health, based in Watertown, Massachusetts, offers a clinically-integrated health plan that combines primary care, chronic condition management, mental healthcare and specialty care with provider navigation. It has an ecosystem of more than 2,300 in-person, in-home and specialty partners.
The acquisition will accelerate Included Health’s alternative plan strategy for employers, according to Owen Tripp, CEO of Included Health. In February, Included Health launched a new alternative plan design that is centered around primary care and provides costs upfront. Patients also receive 24/7 support through Included Health’s AI assistant named Dot, which can provide answers to questions and hand off patients to human support if needed.
“Over time, the goal is to bring together Firefly’s clinically integrated health plan with Included Health’s AI-native navigation, clinical platform, and scale to create a single, connected benefits experience for employers and members nationwide,” he told MedCity News. “That combination is designed to integrate plan design and administration, comprehensive care, and full system support to reduce friction, improve employee health, and lower costs.”
The terms of the deal were not disclosed.
The acquisition comes as employers face skyrocketing healthcare costs. To combat these costs, 17% of employers have adopted a non-traditional or alternative health plan, while 7% are adding it in 2026 and 36% are considering it in the near future, according to a survey from the Business Group on Health.
“If you want different results, you need a different model,” said Fay Rotenberg, CEO of Firefly Health, in a statement. “Firefly flips the traditional model on its head. We’ve built a true health plan alternative where advanced primary care, data-driven navigation, and dynamic plan design work in harmony. Our plan architecture aligns incentives so that the highest-quality care is always the most affordable choice — and when you do that, the clinical and financial results naturally follow. Together with Included Health, we’re bringing a trust-first, high-engagement model to a national stage — with the technology, clinical reach, and plan infrastructure to deliver it for any employer, anywhere.”
Ultimately, the goal of this acquisition is to provide employers and members with a “trusted health plan alternative” that both improves outcomes and costs, Tripp added.
“At the core of that goal is a shared belief that investing in primary care and navigating people to quality are the levers that actually lower unnecessary costs,” he stated. “We believe bringing together care delivery, network optimization, dynamic plan design, and a concierge member experience will create a more sustainable path to long-term savings without degrading access or quality.”
The deal is expected to close in the third quarter of 2026 and is subject to regulatory review.
Photo: mikdam, Getty Images
