Harvard Pilgrim, Tufts Health Plan to merge
Photo / William Hall
Harvard Pilgrim Health Care, including the insurer's Portland office shown here, plans to merge with Tufts Health Plan.
Harvard Pilgrim Health Care and Tufts Health Plan announced Wednesday they plan to merge, creating one of the nation’s largest nonprofit health insurers.
While each company is headquartered in Boston, Harvard Pilgrim writes health insurance in Maine.
The new organization, which has not yet been named, will improve affordability and health outcomes for members, the insurers said.
“Through the combination of two strong organizations with a commitment to non-profit health care in New England, we will be able to provide even greater value to consumers, as well as improve access to care throughout the region,” said Joyce Murphy, chair of Harvard Pilgrim’s board.
The Tufts-Harvard Pilgrim merger, unanimously approved by both boards, is subject to regulatory approvals.
With $3.2 billion in 2018 revenue, Harvard Pilgrim is larger than Tufts, but they have a similar number of customers. The two companies said the combined board of directors would have equal representation from each side.
The merged board would be chaired by Murphy, Harvard Pilgrim’s current board chair. The remaining board will comprise equal representation from both organizations.
Meanwhile, Tufts CEO and President Thomas A. Croswell will serve as CEO of the new organization and Michael Carson, who serves the same roles for Harvard Pilgrim, will serve as president and oversee the combined entity's business lines and subsidiaries.
Carson was appointed CEO last year after the sudden resignation of Eric Schultz, who cited inappropriate behavior in his resignation letter to the board.
Editor's Note: The Hartford Business Journal, a publication of New England Business Media, is an affiliate of Mainebiz.
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