Harvard Pilgrim Health Care and Tufts Health Plan, both based in Massachusetts, intend to combine their nonprofit organizations into a new entity, which will become one of New England’s largest nonprofit health services organizations. The yet unnamed organization will provide health coverage in all segments of the market regardless of a person’s age, income, life circumstance or health status, according to a press release from Harvard Pilgrim Health Care.
The new organization will serve close to 2.4 million members in Massachusetts, Maine, Connecticut, New Hampshire and Rhode Island, offering employer-sponsored plans; Medicare and Medicaid plans; Qualified Health Plans; and plans for those who are dually eligible for Medicare and Medicaid.
“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 Joyce Murphy, chair of the board for Harvard Pilgrim Health Care.
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Tom Croswell, president and CEO of Tufts Health Plan, will serve as CEO of the new organization. Michael Carson, president and CEO of Harvard Pilgrim Health Care, will serve as president and oversee the organization’s business lines and subsidiaries.
“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,” Croswell says.
The agreement, which was unanimously approved by both boards, is subject to multiple local and federal regulatory approvals during which time the organizations remain independent companies.