Health Alliance Plan and CareSource secure regulatory approval for Medicaid joint venture in Michigan

Leading health care providers operating as “HAP CareSource” to create innovative programs focused on health equity.

DETROIT, August 17, 2023 – Health Alliance Plan (HAP), a Michigan-based nonprofit health plan, and CareSource, an Ohio-based nonprofit managed care health plan, received regulatory approval to move forward with their joint venture after a comprehensive review by state and federal regulatory agencies. Operating as “HAP CareSource,” the entities will develop new programs and products to better serve the people of Michigan and provide expansive and higher quality health care coverage to more residents across the state.

HAP, one of the most trusted names in Michigan health insurance, currently provides Medicaid coverage to 43,000 HAP Empowered members in Michigan, along with Medicare Advantage and commercial plans. CareSource, one of the nation’s largest managed Medicaid and government sponsored health care organizations, serves 2.3 million members in Ohio, Indiana, Kentucky, Georgia, Arkansas, North Carolina and West Virginia, including Medicaid, Health Insurance Marketplace and Medicare products.

By joining the strengths of the two non-profit organizations, HAP and CareSource are extending and enhancing a mission-based legacy of offering comprehensive health coverage, providing access to the best physicians, and delivering compassion and care through a combined Medicaid offering and planned re-entry to the Health Care Marketplace.

“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, the only physician/CEO in the Michigan insurance industry. “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.”

CareSource has a tremendous track record of customer service and community impact, making them a strong cultural fit with HAP. CareSource’s operations are among the best in all of health care in terms of claims payment timeliness and auto adjudication rates, as well as their clinical programs built to serve the most vulnerable members.

“HAP 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, CareSource. “This innovative partnership will provide increased access to high-quality care and new innovative programs designed to improve the health outcomes of Michiganders.”

HAP, a fully owned entity of Henry Ford Health, has a critical understanding of the provider-payer relationship and has continued its Michigan expansion over several years. The Michigan Department of Insurance and Financial Services has approved the transaction which allows the parties to move forward with the closing. The transaction and change of ownership will not be effective until the closing is complete, which we anticipate occurring by the end of August or September. The companies will continue to work through operational details and look to future opportunities to provide Michigan residents with the highest quality health care coverage across the state.

About HAP CareSource

HAP CareSource is a joint venture between Health Alliance Plan (HAP) a Michigan-based, nonprofit health plan that provides health coverage to individuals and companies of all sizes, and CareSource, a Dayton, Ohio, based nonprofit, nationally recognized managed care organization with over 2.3 million members. HAP CareSource extends and enhances the mission-based legacies of two trusted, midwestern nonprofit organizations – offering comprehensive health coverage, providing access to the best physicians, and delivering industry-leading compassion and care. The joint venture enables HAP CareSource to provide more Michiganders access to award-winning products, services and an expanded provider network and to expand services to Medicaid-eligible individuals across the Lower Peninsula. For more information, follow us on: Facebook @HAPCareSource and X @HAPCareSource