Two of the most important names in medical insurance have formally merged, with plans to maneuver to a brand new headquarters in Canton later in 2021.
Tufts Well being Plan and Harvard Pilgrim Well being Care mentioned Monday that their beforehand introduced plan to turn out to be a company went into impact on January 1, 2021, with all regulatory approvals in hand. The group plans to announce its new title within the second quarter of 2021.
Each the Tufts and Harvard Pilgrim manufacturers and merchandise will stay in the marketplace “for a time frame,” the businesses mentioned, and member advantages, applications and companies is not going to change in 2021.
The businesses mentioned their new group will serve 2.four million members and forecast that $ 100 million in financial savings shall be immediately utilized because of “administrative synergies” to mitigate premium will increase and members’ out-of-pocket burden.
Based mostly in Watertown, Tufts Well being Plan reported in November that it had 1.15 million members in Massachusetts, Rhode Island, New Hampshire and Connecticut. Harvard Pilgrim Well being Care is predicated in Wellesley and reported having simply over 1.1 million members in November.
“The not too long ago mixed nonprofit group will turn out to be one of many largest healthcare organizations within the area, offering high-quality healthcare protection in all market segments,” the businesses mentioned in a joint announcement. “It’s going to construct easier, smarter and extra seamless experiences, whereas investing in applications that frequently enhance high quality and information members and communities with deep empathy.”
Tom Croswell, former president and CEO of Tufts Well being Plan, will function CEO of the brand new mixed group.
“This mixture brings collectively the expertise of two nice corporations with a wealthy legacy and vigorously preserves non-profit medical insurance protection in our area,” mentioned Croswell. “We’ll construct on our unwavering dedication to serving the wants of our various communities and our members, no matter age, well being, race, id, or earnings.”
Michael Carson, president of the mixed group and former president and CEO of Harvard Pilgrim, mentioned Michael Carson: “We’re excited and keen to start this journey as a company with a imaginative and prescient of reworking the best way healthcare is accessed, aligning a fragmented system and guiding our members and communities for higher well being and a greater healthcare expertise. “
The mixed group not too long ago pledged $ 1 million to help schooling, consciousness, and outreach associated to the COVID-19 vaccine, particularly in black and brown communities. Each organizations had beforehand dedicated greater than $ 10 million to advertise restoration from the pandemic and racial justice.
Different members of the management crew of the brand new group embody Tisa Hughes, authorized director; CFO Umesh Kurpad; Kristin Lewis; chief authorities affairs officer; Cynthia Ring, Director of Personnel; medical director Michael Sherman; and Chief Working Officer Marc Spooner.
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