By TRACEY DRURY
tdrury@bizjournals.com | 716-541-1609

Independent Health is ending a vitamin distribution program set up as an independent, for-profit company.

The nonprofit health plan company in 2008 launched Lighthouse Naturals LLC as an online store, selling name-brand vitamins, supplements and other products.

Structured as a wholly owned subsidiary and based out of North Palm Beach, Fla., the company offered both online sales and educational information for individuals to measure whether such products would conflict in any way with prescribed medications.

The online store was marketed to Independent Health members, as well as the general public, through an online marketing campaign.

Independent Health initially spent about $2.5 million to launch the venture and projected annual revenues of $1.5 million to $2 million.

Dr. Michael Cropp, president and CEO, said the insurer found it difficult to turn a profit in the vitamin and nutritional supplement market.

"It turns out to be too much of a commodity," he said.

Though distribution of products will end, plans call for maintaining the educational component of the website (www.yournaturaloptions.com).

"What's really key for us is we want to make sure those members of ours who are using such products are doing it with their eyes wide open," Cropp says, "with good information about what's a good value and what's potentially harmful or risky."

Independent Health operates other for-profit subsidiaries that are unaffected by the Lighthouse Naturals distribution shut-down, including Pharmacy Benefits Dimensions, a pharmacy benefit management service; Reliance Rx, a specialty pharmacy company; and DxID, formed in August to focus on Medicare Advantage plans.