Wednesday, August 14th, Harvard Pilgrim Health Care and Tufts Health Plan announced an agreement to merge, consolidating Massachusetts’ 2nd and 3rd largest insurers. The board of directors will comprise equal representation from both directors.
“Through the combination of two strong organizations with a commitment to non-profit health care in New England, we will be able to provide even greater value to consumers, as well as improve access to care throughout the region,” said Joyce Murphy, chair of the board for Harvard Pilgrim Health Care.
“Building upon our collective synergies and strengths – which includes being among the top-rated health plans in the country for quality – will unlock value that can be immediately reinvested in our members and the communities we have the privilege of serving,” said Greg Tranter, chair of the board for Tufts Health Plan. “I am excited about the future.”
The new organization, not yet named, will serve 2.4 million members in Massachusetts, Maine, Connecticut, New Hampshire and Rhode Island. The merger will require review on both the state and federal level, including the assessment of consumer impact. During this time, both organizations will continue to operate as independent entities.
Considerations of a Harvard/Tufts merger date back to 2011.
Consolidation on the health insurer side is mirroring similar consolidation on the provider side in Massachusetts, with the Beth Israel Deaconess Medical Center and Lahey Health Hospital networks combining earlier this year.
NEEBCo will continue to monitor this consolidation and inform clients as further developments occur.