Two of the largest names in health insurance have officially combined, with plans to move to a new headquarters in Canton later in 2021.
Tufts Health Plan and Harvard Pilgrim Health Care on Monday said their previously announced plan to become one organization has taken effect, as of Jan. 1, 2021, with all regulatory approvals in hand. The organization plans to announce its new name in the second quarter of 2021.
Both the Tufts and Harvard Pilgrim brands and products will remain in the market “for a period of time,” the companies said, and member benefits, programs and services will not change in 2021.
The companies said their new organization will serve 2.4 million members, and forecast that $100 million in savings due to “administrative synergies” will be directly applied to mitigate premium increases and member out-of-pocket burden.
Based in Watertown, Tufts Health Plan in November reported having 1.15 million members in Massachusetts, Rhode Island, New Hampshire and Connecticut. Harvard Pilgrim Health Care is based in Wellesley and reported having just over 1.1 million members in November.
“The newly combined nonprofit organization will become one of the region’s largest health services organizations, providing high-quality health coverage in every segment of the market,” the companies said in a joint announcement. “It will build simpler, smarter, and more seamless experiences â€“ while investing in programs that continually enhance quality and guide members and communities with deep empathy.”
Tom Croswell, the former president and CEO of Tufts Health Plan, will serve as CEO of the new combined organization.
“This combination brings together the expertise of two great companies with rich legacies, and strongly preserves nonprofit health insurance coverage in our region,” Croswell said. “We will build upon our unwavering commitment to serve the needs of our diverse communities and our members, regardless of age, health, race, identity or income.”
Said Michael Carson, president of the combined organization and previously president and CEO of Harvard Pilgrim: “We are excited and eager to start this journey as one organization with a vision of transforming how health care is accessed, aligning a fragmented system and guiding our members and communities to better health and a better health care experience.”
The combined organization newly pledged $1 million to support education, awareness and outreach related to the COVID-19 vaccine, especially in Black and Brown communities. Both organizations had previously committed more than $10 million to advance pandemic recovery and racial justice.
Other members of the new organization’s leadership team include Tisa Hughes, chief legal officer; CFO Umesh Kurpad; Kristin Lewis; chief government affairs officer; Cynthia Ring, chief people officer; chief medical officer Michael Sherman; and COO Marc Spooner.
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