CareSource partnering with Michigan nonprofit, seeks to expand into ninth state



Dayton-based insurer CareSource recently announced plans to partner with Health Alliance Plan, a Michigan-based nonprofit health plan to offer Medicaid plans in its ninth state.

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.

“As we looked for opportunities to strategically grow our business, an alignment with HAP (Health Alliance Plan) emerged as the perfect fit.” said Erhardt Preitauer, CEO of CareSource. “Our organizations share a passion for going beyond traditional health care to improve the lives of those we serve. We look forward to being able to bring our commitment to operational excellence, our nonprofit mission, and our best-in-class community model to Michigan as we partner with HAP.”

Health Alliance Plan and CareSource are currently finalizing their agreement, which will then be subject to reviews by state and federal regulatory agencies. As that is underway, the companies will continue to work through operational details. CareSource is anticipating beginning to serve members in Michigan no later than late 2024, a spokesperson said.

CareSource covers over 2 million members in Ohio, Indiana, Kentucky, Georgia, Arkansas, North Carolina, and West Virginia including Medicaid, Health Insurance Marketplace and Medicare products. In August, CareSource announced it would also be serving Medicaid members in Mississippi as part of its partnership with TrueCare, which is owned by nearly 60 Mississippi hospitals and health systems.

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

CareSource is one of the largest employers the Dayton area, with about 3,000 employees here and approximately 4,500 total. A CareSource spokesperson said the company is “proud to be headquartered in Dayton,” where its core business operations take place. The company expects that, as it creates new opportunities in additional states, there will also be new opportunities in the Dayton region.

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