WATERTOWN, Mass. – Tufts Health Plan and Harvard Pilgrim Health Care have signed an agreement to combine, the organizations announced Wednesday. The combined entity is yet to be named.
Thomas A. Croswell, CEO and president of Tufts Health Plan, would become CEO of the combined company. Harvard Pilgrim CEO and President Michael Carson would become the company’s president, overseeing business lines and subsidiaries.
The combined board of directors would have equal representations from both nonprofit organizations and would be chaired by Harvard Pilgrim board chair Joyce Murphy.
Tufts Health Plan covered 46,400 residents in Rhode Island as of Sept. 20, 2018, according to the PBN Book of Lists.
The new organization will serve close to 2.4 million members in Rhode Island, Connecticut, Maine, Massachusetts and New Hampshire, the nonprofits said.
The combination will require regulatory approval from multiple entities, both locally and federally.
“Through the combination of two strong organizations with a commitment to nonprofit health care in New England, we will be able to provide even greater value to consumers, as well as improve access to care throughout the region,” said Murphy.
The insurers said that the combination would improve affordability through administrative cost efficiencies and expand access to health care in under-served communities.
“Our communities and consumers today face four major hurdles in health care: affordability, access, quality of health and a fragmented health care experience across various stakeholders and health systems. Through our shared vision, we believe we can tackle these issues and bring more value to the communities we serve,” said Croswell.
The entities will remain separate until the proposed combination is approved by necessary regulatory bodies. The release said that the combined entity would become one of the largest nonprofit insurers in the New England region.
Chris Bergenheim is the PBN web editor. You may reach him at Bergenheim@PBN.com.
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