Detroit’s HAP Forms Joint Venture with CareSource to Boost Health Care in Michigan

Health Alliance Plan (HAP), a Detroit-based nonprofit health plan, and CareSource, an Ohio-based nonprofit and managed care health plan, are forming a joint venture to explore new opportunities to better serve the people of Michigan.
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Healthcare people group. Professional doctor working in hospital office or clinic with other doctors, nurse and surgeon. Medical technology research institute and doctor staff service concept.
HAP and CareSource are partnering to improve equitable health care access in Michigan. // Stock Photo

Health Alliance Plan (HAP), a Detroit-based nonprofit health plan, and CareSource, an Ohio-based nonprofit and managed care health plan, are forming a joint venture to explore new opportunities to better serve the people of Michigan.

HAP and CareSource will come together to provide expansive and higher quality health care coverage to more residents across the state through a combined Medicaid offering and planned re-entry to the Health Care Marketplace.

“At HAP, we’re consistently looking for ways to better serve Michigan. This relationship is rooted in a commitment to the health and well-being of our members and our community,” says Dr. Michael Genord, the only physician/CEO in the Michigan insurance industry.

“We also search for innovative ways to engage with health care providers and create programs to address health equity. Addressing both patient and provider needs ensures high quality care and outcomes. CareSource and HAP are fully aligned in this approach.”

HAP currently provides Medicaid coverage to 43,000 HAP members in Michigan, along with Medicare Advantage and commercial plans. CareSource, one of the nation’s largest managed Medicaid organizations, serves more than 2 million members in Ohio, Indiana, Kentucky, Georgia, Arkansas, North Carolina, and West Virginia including Medicaid, Health Insurance Marketplace, and Medicare products.

Genord and Erhardt Preitauer, president and CEO of CareSource, describe the alliance as grounded in opportunity. Both organizations are state they are committed to thoughtful expansion, exceptional member service, and robust community engagement and investment.

“As we looked for opportunities to strategically grow our business, an alignment with HAP emerged as the perfect fit,” says Preitauer. “HAP’s deep roots and strong brand in Michigan as a trusted health care provider along with a mission-driven approach that matches ours, made this a great alignment.

“Our organizations share a passion for going beyond traditional health care to improve the lives of those we serve. We look forward to being able to bring our commitment to operational excellence, our nonprofit mission, and our best-in-class community model to Michigan as we partner with HAP.”

Both CEOs noted the cultural fit. HAP is widely recognized in Michigan for its community engagement programs including an ongoing partnership with the Detroit Public School Community District and as the long-standing primary sponsor of the HAP Crim Festival of Races in Flint.

Its community investment focuses on improving social determinants of health, specifically addressing homelessness, food insecurity, and physical activity. CareSource is recognized for its deep community engagement across markets focused on improving health outcomes and conditions for low-income, underserved populations including awarding millions in grants annually to community organizations and an award-winning prescriber outreach program aimed at reducing opioid prescriptions.

HAP and CareSource are finalizing their agreement, which will then be subject to a comprehensive review by state and federal regulatory agencies. As that is underway, the companies will continue to work through operational details and look to future opportunities to provide Michigan residents with the highest quality health care coverage across the state.