Dive Brief:
- Michigan nonprofit health plans HealthPlus and Health Alliance Plan officially merged this week following final approval from state and federal regulators, Crain's Detroit Business reports.
- The pair, which released their letter of intent to merge in November 2015, will insure an estimated total of 650,000 people and employ about 1,300.
- HealthPlus brings about 75,000 members to the merger.
Dive Insight:
The move follows a rebound for HealthPlus, which had suffered two years of significant losses before achieving a $41 million turnaround, Crain's notes, during which it sold its Medicaid business of 90,000 members to Molina Healthcare for an undisclosed amount.
“It put us in a position to find a great health partner with HAP,” former HealthPlus CEO Michael Genord told Crain's.
From HAP's perspective, the merger is expected to facilitate expansion into mid-Michigan, and the company is optimistic about its operations for this year.
HealthPlus employer groups will be transitioned to HAP when they renew coverage, and individual members will be moved during the next open enrollment.