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Health Alliance Plan to Acquire Detroit-Based Medicaid Plan
Tuesday 11 June 2019

11 June 2019 - Detroit, US-based healthcare provider Henry Ford Health System and Health Alliance Plan said that HAP has signed a definitive agreement to acquire Trusted HP Michigan, a 9,000-member Medicaid plan based in Detroit, formerly known as Harbor Health Plan, Inc, the principals said.
The move marks HAP's re-entrance into the state of Michigan's Medicaid HMO service area known as Region 10, which includes Wayne, Oakland and Macomb Counties.
The terms of the agreement provide for a seamless transition for Trusted HP Michigan members, who will be able to keep their doctor and continue using their services and current ID cards.
Trusted HP Michigan's nearly two dozen employees will also become part of the HAP team.
HAP currently serves 570,000 total members across Michigan. HAP's subsidiary, HAP Midwest Health Plan, offers Medicaid products under the HAP Empowered name.
HAP Empowered is currently available in Region 6, which includes Genesee, Huron, Lapeer, Sanilac, Shiawassee, St. Clair and Tuscola counties.
Covered Medicaid programs offered through HAP Empowered include healthcare coverage for people impacted by the Flint water crisis, MIChild, Healthy Michigan Plan and Children's Special Health Care Services.
HAP also participates in the MI Health Link Dual Demonstration Project, serving 4,500 members who are eligible for both Medicare and Medicaid in Wayne and Macomb counties, including some of the most underserved areas of Detroit.
Trusted HP Michigan is owned by Trusted Health Plan Inc., a Washington, DC-based managed care organisation.
Previously named Harbor Health Plan and ProCare Health Plan, the plan has been operating as a licensed HMO in Michigan since 2000.
The acquisition, now subject to regulatory approval, is expected to be finalized in late summer. The deal could increase HAP's Medicaid membership by as much as 9,000 members, most of which are in Wayne County.
Henry Ford Health System is a six-hospital system headquartered in Detroit, Michigan. Henry Ford provides both health insurance and health care delivery, including acute, specialty, primary and preventive care services backed by excellence in research and education. Henry Ford Health System is led by president and CEO Wright Lassiter III.
Health Alliance Plan is a Michigan-based, nonprofit health plan that provides health coverage to individuals and companies of all sizes.
For nearly 60 years, HAP has partnered with leading doctors and hospitals, employers and community organizations to enhance the health and well-being of the lives it touches.
HAP offers a product portfolio with six distinct product lines: Group Insured Commercial, Individual, Medicare, Medicaid (using the HAP Empowered name), Self-Funded and Network Leasing. HAP excels in delivering award-winning preventive services, disease management and wellness programmes, as well as personalised customer service.
Date Published: 11/06/2019
Target: Trusted HP Michigan
Country: USA
Sector: Healthcare
Type: Corporate acquisition
Financing: Cash and Stock
Status: Agreed
Vendor: Henry Ford Health System
Buyer: Health Alliance Plan
Terms of the deal were not disclosed