The two nonprofit health plans issued a letter of intent to merge and entered into a period of due diligence last November. The new health plan is expected to insure around 650,000 members and employ around 1,300 people.
“HAP is thrilled about the opportunity to merge with HealthPlus,” HAP COO Matt Walsh told Crain’s. “We got several key customers and cover southeast Michigan to mid-Michigan and beyond.”
HealthPlus, once under state supervision for incurring significant financial losses over the previous two years, has since achieved a $41 million turnaround. The health plan completed the turnaround last September when it closed the sale of its 90,000-member Medicaid plan to Troy-based Molina Healthcare of Michigan for an undisclosed price.
“It put us in a position to find a great health partner with HAP,” Michael Genord, MD, former HealthPlus CEO told Crain’s.
HealthPlus will maintain its brand identity during its integration with Health Alliance, according to Crain’s. The merger took effect Feb. 1.
More articles on payer issues:
Future structure of Humana is ‘still to be defined’
Aetna expresses ‘serious concerns’ over ACA exchanges
Aetna CEO says insurer’s guidance is ‘appropriately prudent’
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