Deal Nonetheless Pending Approval by Connecticut Insurance coverage Division
Massachusetts insurance coverage regulators have accredited Point32Health’s proposed acquisition of Well being New England, a subsidiary of Baystate Well being that runs 4 hospitals in western Massachusetts.
Massachusetts Commissioner of Insurance Michael Caljouw accredited the transaction on Nov. 14 however stated the Connecticut Insurance coverage Division should additionally vet the deal earlier than it may well shut.
Springfield-based HNE gives insurance coverage for 180,000 members in western Massachusetts, whereas Point32Health, which was created in 2021 by combining Tufts Well being Plan and Harvard Pilgrim Well being Care, covers about 1.9 million members in Massachusetts, Maine, Connecticut, New Hampshire and Rhode Island. The well being plans signed a “definitive agreement” for the acquisition in mid-February.
Scott Walker, CFO of Point32Health, stated buying HNE would enhance entry to behavioral well being care and telehealth, drive financial savings by means of “operational efficiencies,” and create a extra “inexpensive community with wider geographic attain,” in line with the DOI decision circulated by the Massachusetts Well being and Hospital Affiliation on Monday. Point32Health doesn’t intend to “liquidate HNE, promote any of its belongings exterior the bizarre course of enterprise; or merge or consolidate HNE with some other particular person or individuals,” the choice stated.
Richard Swift, CEO of HNE, stated the deal will allow the regional well being insurer to beat expertise challenges, enhance product choices, and develop entry to care, particularly for “underserved populations.”
Walker and Swift say the deal is just not anticipated to considerably reduce competitors or create a monopoly within the medical insurance market.
Connecticut regulators should additionally overview the acquisition. HNE owns HNE of Connecticut, which is licensed however not presently working within the state, the choice says.
