SPRINGFIELD – Baystate Health is selling its nonprofit health insurance subsidiary, Health New England, to an eastern Massachusetts company.
The buyer is Point32Health, the nonprofit parent company of Harvard Pilgrim Healthcare and Tufts Health Plan.
Terms of the sale were not disclosed.
“While the parties have reached mutually agreeable terms, our priorities in the transaction are to find a partner who shares Baystate Health's values and who can support HNE and the communities we serve. Baystate said in a statement.
Springfield-based Health New England offers a variety of plans in the commercial, Medicaid and Medicare markets, with a concentration of approximately 180,000 members in western Massachusetts.
The much larger Point32Health has 1.9 million members in Massachusetts, Maine, Connecticut, New Hampshire and Rhode Island.
“The continued growth and evolution of Health New England and its programs is critical to the communities we serve,” said Mark Keroak, CEO of Baystate Health. the doctor said.
Keroack said Point32Health is known for its high-quality products, strong network and commitment to underserved populations.
The distribution agreement has been unanimously approved by Point32Health's directors and Baystate Health's trustees and is subject to regulatory approval, according to a news release.
Health New England was incorporated in 1985 as a health maintenance organization (HMO).
Point32Health said it will “leverage the strengths of both organizations.”
The company said it plans to combine the strengths of both organizations to increase efficiency and expand services to customers. It promised to expand access to underserved populations and preserve nonprofit options.
Kane A. Hayes, president and CEO of Point32Health, said strengthening high-quality nonprofit health plans is critical to health care in the state.
“We are excited about the possibility of welcoming Health New England into the Point32Health family of companies,” Hayes said in a statement. “As the only two health plans in the state serving commercial, Medicaid, and Medicare populations, we serve people of all socioeconomic backgrounds, especially underserved populations. and has the commitment and expertise to improve quality of life through programs and services that improve total human health.”
Blue Cross Blue Shield has the largest market share in Massachusetts, with more than 1.6 million members enrolled in private commercial plans and public plans managed by private plans in the Bay State, according to state data.
