Health Alliance Plan and CareSource to partner in Michigan

• Initial effort focuses on providing access to quality care for Medicaid beneficiaries
• Leading health care providers join forces to create more programs focused on health equity

DETROIT, February 21, 2023 – Health Alliance Plan (HAP), a Michigan-based nonprofit health plan and CareSource, an Ohio-based nonprofit and managed care health plan with members in 7 states, are forming a joint venture to explore new opportunities to better serve the people of Michigan. HAP and CareSource will come together to provide expansive and higher quality health care coverage to more residents across the state through a combined Medicaid offering and planned re-entry to the Health Care Marketplace.

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 organizations, serves more than 2 million members in Ohio, Indiana, Kentucky, Georgia, Arkansas, North Carolina and West Virginia including Medicaid, Health Insurance Marketplace and Medicare products.

Dr. Michael Genord, president and CEO of HAP, and Erhardt Preitauer, president and CEO of CareSource, describe the alliance as grounded in opportunity. Both organizations are committed to thoughtful expansion, exceptional member service and robust community engagement and investment. The alignment of mission, vision and business goals provided the foundation for this relationship.

“At HAP, we’re consistently looking for ways to better serve Michigan. This relationship is rooted in a commitment to the health and well-being of our members and our community,” said Dr. Genord, the only physician/CEO in the Michigan insurance industry. “We also search for innovative ways to engage with health care providers and create programs to address health equity. Addressing both patient and provider needs ensures high quality care and outcomes. CareSource and HAP are fully aligned in this approach.”

Both CEOs noted the exceptional cultural fit. HAP is widely recognized in Michigan for its community engagement programs including an on-going partnership with the Detroit Public School Community District and as the long-standing primary sponsor of the HAP Crim Festival of Races in Flint. Its community investment focuses on improving social determinants of health, specifically addressing homelessness, food insecurity and physical activity. CareSource, with its people-first approach, is recognized for its deep community engagement across markets focused on improving health outcomes and conditions for low-income, underserved populations including awarding millions in grants annually to community organizations and an award-winning prescriber outreach program aimed at reducing opioid prescriptions.

“As we looked for opportunities to strategically grow our business, an alignment with HAP emerged as the perfect fit.” said Erhardt Preitauer, CEO, CareSource. “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. 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.”

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 Henry Ford Health team is pleased to support the joint venture between HAP and CareSource,” said Bob Riney, president and CEO, Henry Ford Health. “We’ve long been known for our commitment to bringing equitable and accessible care to the communities we serve, and this endeavor is a true win for those who depend on us to provide that care and coverage.”

HAP and CareSource are finalizing their agreement, which will then be subject to a comprehensive review by state and federal regulatory agencies. As that is underway, 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 Health Alliance Plan

Health Alliance Plan (HAP) is a Michigan-based, nonprofit health plan that provides health coverage to individuals and companies of all sizes. For more than 60 years, HAP has partnered with leading doctors and hospitals, employers and community organizations to enhance the health and well-being of the lives it touches. HAP offers a product portfolio with six distinct product lines: Group Insured Commercial, Individual, Medicare, Medicaid (using the HAP Empowered name), Self-Funded and Network Leasing. HAP excels in delivering award-winning preventive services, disease management and wellness programs, as well as personalized customer service. For more information, visit www.hap.org.