Dayton-based insurance company CareSource announced Thursday that it will expand into its seventh state next year, likely creating some new jobs in Dayton.
CareSource officials said Thursday that their partner health plan TrueCare received an “intent to award a contract to provide services” for the statewide administration of the Mississippi Division of Medicaid Coordinated Care Organization Program.
That program consists of the Mississippi Coordinated Access Network (MississippiCAN) and the Children’s Health Insurance Program (CHIP). The contract is being awarded by the Mississippi Division of Medicaid.
CareSource is one of the largest employers the Dayton area, with about 3,000 employees here and approximately 4,500 total. A CareSource spokesperson called the company “a committed partner” to the city of Dayton, and said its expansion into other states has a positive impact on the Dayton region.
Company officials did not cite any specific hiring plans Thursday, but said with state expansions, there is a need for “additional Dayton-based shared services, support resources, and jobs.”
CareSource, which administers one of the nation’s largest Medicaid managed care plans, already covers 2 million people in Georgia, Indiana, Kentucky, Ohio, and West Virginia. CareSource is also part of a team offering services in Arkansas for people with developmental disabilities.
CareSource has multiple offices in downtown Dayton, including the office tower built in 2019 at First and Jefferson streets, which was built to accommodate for the future growth of company, according to CareSource officials at that time.
The company reported $11.2 billion in gross revenue in 2020, up from $10.6 billion in 2019. CareSource said 9.7% went toward administration, up from 8.3% reported the year prior.
The joint bid between TrueCare and CareSource placed first overall in the state of Mississippi’s evaluation of bids, according to the Mississippi Division of Medicaid. TrueCare, which is owned by nearly 60 Mississippi hospitals and health systems, plans to utilize CareSource’s experience as a nonprofit managed health plan to provide services to Mississippi Medicaid members.
“CareSource’s strength as a national leader in quality and operational excellence aligned with TrueCare’s local knowledge is a unique combination. TrueCare drives innovation at the heart of member care while also bringing value for providers,” said Erhardt Preitauer, president and CEO of CareSource. “We look forward to making a lasting difference in the health and well-being of Mississippians while driving better quality and outcomes.”
The new contract’s initial term is expected to begin on July 1, 2023. CareSource had announced a joint bid with TrueCare in December 2021. As the procurement process continues, MississippiCAN and CHIP members will continue to receive services through their existing coordinated care organizations, according to CareSource.
CareSource first began looking into partnering with TrueCare to serve Mississippians in 2020, according to a CareSource spokesperson.