Health Alliance Plan And HealthPlus Plan To Merge

Oct. 03--HealthPlus of Michigan will merge into Health Alliance Plan (HAP) operations, the two health insurance providers announced late Friday afternoon.

The two sides said they have an exclusive, non-binding letter of intent for the merger.

"An intense period of due diligence is now under way, intended to reach a definitive agreement in the near future, subject to federal and state regulatory approval," according to a statement released by the two Michigan health care providers.

HealthPlus members' access to service will not be affected during the due diligence period, according to the statement.

Flint-based HealthPlus was formed in 1979. HAP is based in Detroit and has more than 675,000 members and over 1,000 employees. Both are non-profits.

"We believe by combining our strengths we will achieve greater value and stability in the Mid-Michigan region for our members, employer groups, labor and providers," said HAP President and CEO James Connelly. "We're two Michigan-based, not-for-profit health companies with a demonstrated history of outstanding customer service that has improved the health and well-being of our communities for many years."

"A partnership with HAP gives HealthPlus the opportunity to provide its members and the communities it serves an even higher level of quality and service through access to HAP's state-of-the art technology solutions, its commitment to improved outcomes and continued financial stability," said Dr. Michael Genord, HealthPlus president and CEO. "Furthermore, both HealthPlus and HAP have the same rich history of strong labor ties, including employee representation and significant labor membership."

___

(c)2015 the Detroit Free Press

Visit the Detroit Free Press at www.freep.com

Distributed by Tribune Content Agency, LLC.