Health Alliance Plan (HAP), a Detroit-based nonprofit health plan, and CareSource, an Ohio-based nonprofit managed care health plan, have received regulatory approval to move forward with their joint venture to combine their resources and create a new company called HAP CareSource after a review by state and federal regulatory agencies.
Operating as “HAP CareSource,” the entities will develop new programs and products meant to better serve the people of Michigan and provide expansive and higher quality health care coverage to more residents across the state.
HAP currently provides Medicaid coverage to 43,000 HAP empowered members in Michigan, along with Medicare Advantage and commercial plans. CareSource, one of the nation’s largest managed Medicaid and government-sponsored health care organizations, serves 2.3 million members in Ohio, Indiana, Kentucky, Georgia, Arkansas, North Carolina, and West Virginia, including Medicaid, Health Insurance Marketplace, and Medicare products.
By combining their strengths, the two nonprofit organizations will work to extend and enhance their offerings of comprehensive health coverage, as well as provide access to physicians and deliver care through a combined Medicaid offering and planned re-entry to the health care marketplace.
“With a people-first focus and community-based approach, our priority is helping members and their families live happier, healthier lives,” says Dr. Michael Genord, president and CEO of HAP and the only physician/CEO in the Michigan insurance industry. “We’re more than a health insurance plan. We meet our members where they are and help them find information, resources, supportive services, innovative programs, and meaningful guidance at every step along their journey.”
HAP, a fully owned entity of Henry Ford Health in Detroit, has continued its Michigan expansion over several years. The Michigan Department of Insurance and Financial Services has approved the transaction which allows the parties to move forward with the closing.
“HAP CareSource will be a powerful combination of our operational excellence across the country with HAP’s deep local presence and legacy,” said Erhardt Preitauer, president and CEO of CareSource. “This innovative partnership will provide increased access to high-quality care and new innovative programs designed to improve the health outcomes of Michiganders.”
The transaction and change of ownership will not be effective until the closing is complete, which is anticipated to take place by the end of August or in early September.
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.
