Two institutional-based health plans in New England have announced their plans to merge.
Harvard Pilgrim Health Care, a not-for-profit health services company providing health benefit plans and programs to more than 3 million members and customers through its family of companies, and Tufts Health Plan, a 1.16-million-member health plan serving Massachusetts, Rhode Island, Connecticut and New Hampshire, will combine into a new organization that has yet to be named. The two health plans previously attempted to merge eight years ago, but the deal never went through.
Together, they will serve close to 2.4 million members in New England through employer-sponsored plans, Medicare and Medicaid plans, Qualified Health Plans and plans for dual eligibles.
“Through the combination of two strong organizations with a commitment to non-profit health care in New England, we will be able to provide even greater value to consumers, as well as improve access to care throughout the region,” Joyce Murphy, chair of the board for Harvard Pilgrim Health Care, said in a statement.
The new organization will be led by Tom Croswell, who currently serves as president and CEO of Tufts Health Plan. Michal Carson, president and CEO of Harvard Pilgrim Health Plan, will be president and oversee the different business lines and subsidiaries.
“Building upon our collective synergies and strengths––which includes being among the top-rated health plans in the country for quality––will unlock value that can be immediately reinvested in our members and the communities we have the privilege of serving,” Greg Tranter, chair of the board for Tufts Health Plan, said in the announcement.
The merger was approved by boards of both health plans but will require local and federal regulatory approvals.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."