McLaren Health Plan Announces Intent to Acquire CareSource Michigan

CareSource members can keep same doctors, hospitals

tFLINT — McLaren Health Plan today announced it has reached an agreement to purchase CareSource Michigan, a 34,500-member Medicaid health maintenance organization (HMO) based in Lansing, Mich., and operated by CareSource, the nation’s second largest Medicaid managed health care plan, headquartered in Dayton, Ohio.

tThe Michigan Office of Financial and Insurance Regulation must review and approve the proposed transaction before it can become final. The approval process is expected to take approximately 90 days.

tUpon approval, McLaren Health Plan intends to merge the operations of CareSource Michigan with its current operations headquartered in Flint. CareSource Michigan members will become members of McLaren Health Plan once the transaction has been finalized and will have access to a combined network of more than 20,000 providers statewide. Current CareSource Michigan members will experience no interruption in the health care services they currently receive and will keep their doctors and use the same hospitals. The transaction will not impact CareSource Ohio members.

tWith the anticipated acquisition, McLaren Health Plan will expand its market for Medicaid managed care to 53 Michigan counties from its current 30-county footprint. Founded in 1998, McLaren Health Plan currently covers more than 80,000 people in its Medicaid HMO.

t“For McLaren Health Plan, the ability to expand into new markets and nearly double the geographic service area for our Medicaid managed care services is strategically significant,” said Kathy Kendall, president and CEO of McLaren Health Plan. “Obviously, the Medicaid market in Michigan has been growing and, with the expanded 2014 eligibility standards of the Patient Protection and Affordable Care Act, we expect that this growth will be sustained moving into the future. This transaction would also give McLaren Health Plan a much-needed presence in the ‘dual eligible’ market whose members are eligible for both Medicare and Medicaid. It expands our service offerings in a meaningful manner.”

tAlong with a strong commitment to its employees, CareSource has a longstanding reputation for providing excellent care to its members and outstanding service to its provider community, Kendall said.

t“McLaren Health Plan shares these same values — to provide superior care and service to the people and communities we serve.”

tThe National Committee for Quality Assurance (NCQA), she noted, accredits McLaren Health Plan as “excellent.” And in 2010 and 2011, it was recognized by Modern Healthcare magazine as a “Best Place to Work” in health care in the U.S.

t“That says a lot about the value we place on our employees,” Kendall said.

tPamela B. Morris, CareSource president and CEO, said the organization is pleased to have found a nonprofit organization that shares the value of putting members at the center of every decision.

t“After months of evaluation, we are confident that McLaren is the right organization to serve the CareSource Michigan health plan and provide the highest quality service and innovation to our current members," she says.

tAs part of the formal transition process, all CareSource Michigan members will be sent welcome kits that provide information about McLaren services and participating providers. This includes the offer of a personal health coach who will provide each member with information and assistance in accessing the right health care services based on his or her unique needs.