CareSource expands into ninth state, Michigan, through partnership



Dayton-based insurer CareSource, along with partner Health Alliance Plan, a Michigan-based nonprofit health plan, received the go-ahead from state and federal regulators to move forward with providing Medicaid and Marketplace services.

CareSource first announced its partnership with Health Alliance Plan in February.

“HAP (Health Alliance Plan) CareSource will be a powerful combination of our operational excellence across the country with HAP’s deep local presence and legacy,” said Erhardt Preitauer, president and CEO of CareSource. “This innovative partnership will provide increased access to high-quality care and new innovative programs designed to improve the health outcomes of Michiganders.”

CareSource and Health Alliance Plan, which is a fully owned entity of Henry Ford Health, together plan to provide health coverage to consumers through a combined Medicaid offering and planned re-entry to the Health Care Marketplace. Health Alliance Plan provides Medicaid coverage to 43,000 members in Michigan, along with Medicare Advantage and commercial plans.

“With a people-first focus and community-based approach, our priority is helping members and their families live happier, healthier lives,” said Dr. Michael Genord, president and CEO of Health Alliance Plan. “We’re more than a health insurance plan. We meet our members where they are and help them find information, resources, supportive services, innovative programs and meaningful guidance at every step along their journey.”

The Michigan Department of Insurance and Financial Services approved the joint venture between CareSource and Health Alliance Plan, allowing the parties to move forward with the closing of their joint venture.

The transaction and change of ownership will not be effective until the closing is complete, which the companies anticipate occurring by the end of August or September, according to a statement from CareSource. Once closed, the transaction will result in a joint venture between Health Alliance Plan and CareSource where both companies will hold an ownership interest in HAP CareSource, formerly known as HAP Empowered Health Plan, Inc..

CareSource, which administers one of the nation’s largest Medicaid managed care plans, is one of the largest employers the Dayton area, with about 3,000 employees here and about 4,500 total. When asked if it plans to expand its employee base to support the new state on its roster of Medicaid customers, a spokesman said the company is committed to staffing accordingly to meet the needs of its growing business.

CareSource covers 2.3 million people in multiple states, including in Georgia, Indiana, Kentucky, Ohio, and West Virginia. It is also part of a team offering services in Arkansas for people with developmental disabilities. CareSource also serves Marketplace clients in North Carolina. CareSource also received a contract to serve Medicaid members in Mississippi, but the company has not started serving members yet.

CareSource also announced plans in September to make a bid to service Medicaid customers in Texas. A spokesman for CareSource said they submitted that bid to Texas earlier this year, and they are anticipating a decision next year.

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