CareSource, Health Alliance Plan Strike Up Medicaid Joint Venture

CareSource, an Ohio-based, nonprofit Medicaid MCO, will work with Michigan nonprofit insurer Health Alliance Plan (HAP) on a new Medicaid joint venture. One managed care insider tells AIS Health, a division of MMIT, that the deal is evidence that midsized, multistate carriers like CareSource feel competitive pressure to develop — and small plans feel the need to purchase — the kind of analytics and back-end software that diversified, publicly traded firms like UnitedHealth Group and the Cigna Group have spent billions to develop.

CareSource CEO Erhardt Preitauer said in a Feb. 21 press release that the deal came “as we looked for opportunities to strategically grow our business.” He added that “an alignment with HAP emerged as the perfect fit,” and that “HAP’s deep roots and strong brand in Michigan as a trusted health care provider along with a mission-driven approach that matches ours made this a great alignment.…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.”

© 2024 MMIT
Peter Johnson

Peter Johnson

Peter has worked as a journalist since 2011 and has covered health care since 2020. At AIS Health, Peter covers trends in finance, business and policy that affect the health insurance and pharma sectors. For Health Plan Weekly, he covers all aspects of the U.S. health insurance sector, including employer-sponsored insurance, Medicaid managed care, Medicare Advantage and the Affordable Care Act individual marketplaces. In Radar on Drug Benefits, Peter covers the operations of (and conflicts between) pharmacy benefit managers and pharmaceutical manufacturers, with a particular focus on pricing dynamics and market access. Before joining AIS Health, Peter covered transportation, public safety and local government for various outlets in Seattle, his hometown and current place of residence. He graduated with a B.A. from Colby College.

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