“Given our position in the Michigan market, we did not see near-term growth opportunities for CareSource” in that state, CareSource told the Dayton Daily News in a prepared statement. “The decision to sell the CareSource Michigan plan to McLaren Health Plan was not taken lightly. After much deliberation, we determined that it was in the best interest of our members and employees to sell.”
CareSource is the nation’s second-largest Medicaid managed health care plan. Of its 1,217 workers, 43 are in Michigan. CareSource Michigan is based in Lansing. While McLaren is acquiring the Lansing property and will merge it with its Flint headquarters, it wasn’t clear Wednesday whether all CareSource Michigan employees would be offered jobs with McLaren.
The Michigan Office of Financial and Insurance Regulation must approve the proposed transaction before it can become final, a process that will take about 90 days, according to a news release.
CareSource recently was chosen as one of five managed-care organizations that will serve Medicaid-enrolled Ohioans as of Jan. 1, 2013. The Ohio Medicaid contract is vital for Dayton-based CareSource, accounting for the vast majority of its $2.8 billion in revenues in 2011. CareSource expects revenues to reach $3.3 billion this year.
CareSource last month announced it is partnering with Humana, a large Medicare Advantage provider, to serve the dual-eligible Medicaid and Medicare population.
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