Health Alliance Plan and HealthPlus sign definitive agreement to merge

November 02, 2015

Merger creates one of the largest health insurers in Michigan

DETROIT - HealthPlus of Michigan and Health Alliance Plan (HAP) jointly announced today that they have reached a definitive agreement to merge. The two companies said on Oct. 2 that they had signed a letter of intent to merge operations and since then have been in an intense period of due diligence. The merger is subject to regulatory approval. Upon receipt of these approvals, the planned effective date for the merger is Jan. 1, 2016.

The merger between HAP, which is headquartered in Detroit, and Flint-based HealthPlus will establish a company that's one of the largest health insurers in Michigan.

"This is a win-win situation, said HAP President and CEO James Connelly. "It's a win for both HealthPlus and HAP because it creates a larger, stronger, more competitive company with a solid portfolio of comprehensive products and opportunities for growth. As important, it's a win for the members of both companies because two Michigan-based non-profit companies are coming together to provide excellent coverage, care and customer service."

The two companies have strong synergies in culture, products, service areas and provider networks that will enable them to integrate and build upon their collective strengths. Of significant importance are the long-standing relationships both HealthPlus and HAP intend to maintain, including their individual and employer group customers - with both companies having deep ties to the labor community in Michigan - and many robust partnerships each has cultivated over the years to enhance the health and well-being of the communities they serve.

"Both companies bring a sense of stewardship to community health, their employees and especially to their valued members," said Michael Genord, M.D., HealthPlus president and CEO. "We're looking to build on the shared strengths of HealthPlus and HAP and bring our innovative provider partnerships and award-winning customer service to even more Michigan residents."

HealthPlus members will still have access to the same high-quality provider networks, coverage and services they do today. Agents, labor and employer groups can be confident they will continue to receive the same outstanding service and competitive benefit packages.

Learn more about HealthPlus at healthplus.org. Learn more about HAP at hap.org.

Media contacts:

Lee Ann Welsh, HAP
(248) 443-20827 office
(248) 308-0800 cell
lwelsh@hap.org

Kathy Bilitzke, HealthPlus
(810) 600-8045 office
(248) 980-4597 cell
kbilitzke@healthplus.org

Categories: HAP plans, Company growth

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