Tufts Health Plan, Harvard Pilgrim Health Care combine

PROVIDENCE – Having cleared all regulatory hurdles, Tufts Health Plan and Harvard Pilgrim Health Care have officially combined, creating a New England-region health-services organization that serves some 2.4 million members. The merger was effective on Jan.1.

“This combination brings together the expertise of two great companies with rich legacies, and strongly preserves nonprofit health insurance coverage in our region,” Tom Croswell, CEO of the new organization, said in a media release. “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.”

Joyce Murphy, chair of the board for the combined organization, said: “As one organization, we look forward to addressing the complex health care issues and challenges of today, tomorrow and in the future.”

The merger is eventually expected to realize more than $100 million in savings “through administrative synergies which will go directly to mitigating premium increases and member out-of-pocket burden,” the new organization said.

The two groups are now one, but “both heritage brands and products will remain in the market for a period of time, and the benefits, programs and services its members rely on will not change in 2021 as a result of the combination,” the company said. The new name is expected to be announced later this year. Late in the year, it will open a new headquarters in Canton, Mass.

Tufts Health Plan and Harvard Pilgrim Health Care will support initiatives aimed at helping people during the pandemic, particularly those who belong to communities of color, according to the release.

“With the pandemic continuing to have a devastating impact on our communities, an initial investment of $1 million will be made to support education, awareness and outreach related to the vaccine, especially in Black and Brown communities, where the virus has had a disproportionate and tragic impact,” the company said. Already, it noted, more than $10 million has been spent “to advance pandemic recovery and racial justice.”

Recognizing the close relationship between physical and mental health, the company also aims to guide “members and communities with deep empathy to find their best version of health and wellness. With behavioral health an integral part of overall health, prioritizing the integration of medical and behavioral health management is a top priority for the new organization.”

The companies announced their intent to merge in August 2019.

This article originally appeared on The Providence Journal: Tufts Health Plan, Harvard Pilgrim Health Care combine

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