Harvard Pilgrim, Tufts to pursue merger
TWO OF THE state’s largest health insurers on Wednesday announced plans to merge into a new, combined organization that Harvard Pilgrim Health Care and Tufts Health Plan said would serve nearly 2.4 million members in Massachusetts, Maine, Connecticut, New Hampshire, and Rhode Island.
The new organization has not yet been named, and company officials have not said where it will be based — Harvard Pilgrim is headquartered in Wellesley and Tufts in Watertown. The deal is subject to various state and federal approvals, and the two companies will remain independent during the approval process.
The deal, announced midday Wednesday, amounts to a significant consolidation in the Massachusetts health care insurance market, with two of the largest insurers joining forces and creating a single, larger rival to the state’s biggest insurer, Blue Cross Blue Shield of Massachusetts. Policyholders and consumers will be on the lookout for impacts on them, and the agreement will be also be vetted by government regulators.
In a joint statement, Tufts and Harvard Pilgrim said the combined organization “will be even more effective, better able to keep high-quality health care accessible and affordable, while at the same time investing in programs and initiatives that enhance quality.”
Read more: https://commonwealthmagazine.org/health-care/harvard-pilgrim-tufts-to-pursue-merger/