Madison-based insurer buys Health Tradition, saving it from closure

May 22--Health Tradition Health Plan, the Mayo Clinic Health System HMO plan that had been on life support in the roiling health insurance industry, pulled through to survive with new ownership as part of WEA Insurance Corp.

Mayo and WEA Insurance, which is owned by Madison-based WEA Trust, announced jointly Tuesday that WEA Insurance is buying Health Tradition.

The HMO had been slated to close because of the challenges of maintaining a small plan amid the uncertainty of the insurance market, Mayo official Joe Kruse had said when he announced in September that Mayo would shutter Health Tradition in two to three years.

Political wrangling over the Affordable Care Act has created havoc among many insurers and health care institutions, although Kruse said that was less a factor than the business model.

The projected closing had left Health Tradition policyholders -- including 2,000 who are 65 and older and another 7,000 commercial clients -- wondering where to obtain coverage. Health Tradition, which covers 15 counties, was founded about three decades ago.

"This is good news for patients and employers in this region, as it creates another choice for people who wish to receive their care at Mayo Clinic Health System locations in Wisconsin," said Kruse, who is southwest Wisconsin regional administration chairman of the Mayo system.

The nonprofit WEA Trust, created in 1970 to serve public school employees in the Badger State, provides group health insurance and administrative services to public employers -- including state, county and municipal groups -- throughout Wisconsin.

WEA Insurance plans to expand its market to serve the public sector through the WEA Trust health plan and the private sector through the Health Tradition Health Plan, while maintaining a strong relationship with Mayo Clinic Health System, a WEA representative said.

WEA also will offer employer plans for small and large companies, as well as Medicare recipients.

"We are excited for this next step in our journey and to continue to provide high-quality provider access through the Health Tradition Health Plan," said Mike Quist, WEA Trust's president and CEO.

"Throughout the past 10 years, WEA Trust has transformed into an innovative, member-centric company," Quist said, adding that WEA would extend the same innovations to Health Tradition clients.

The agreement was a natural step for both companies, providing an expansion opportunity for WEA Insurance and continuing access to Mayo Clinic for Wisconsin residents, WEA and Mayo representatives said.

The deal also ensured multiple health insurance options for western and southwestern Wisconsin, they said.

___

(c)2018 the La Crosse Tribune (La Crosse, Wis.)

Visit the La Crosse Tribune (La Crosse, Wis.) at www.lacrossetribune.com

Distributed by Tribune Content Agency, LLC.