Medical Mutual acquires Mercy’s HealthSpan Partners

Cleveland– Ohio Medical Mutual acquires the 105,000 members of HealthSpan Partners’ group and individual health insurance business.

Medical Mutual is the largest health insurance provider based in Ohio. Terms of the acquisition were not disclosed.

HealthSpan Partners is affiliated with Mercy Health, the Cincinnati-based nonprofit hospital system that operates hospitals in the Mahoning Valley. Some 32,000 Mercy employees are insured by HealthSpan Partners. About 300 jobs will be cut, according to the Cincinnati Business Courier.

Meanwhile, HealthSpan’s physician group will be disbanded by the end of this month, the newspaper reported on January 15. Mercy’s subsidiary reported a loss of $117 million in the first nine months of 2015. Mercy entered the insurance business when it bought parts of Kaiser Permanente in 2013.

“The agreement provides that HealthSpan will continue to insure its members enrolled in employer-sponsored plans through their renewal date or August 31, whichever comes first, and individual members through December 31, 2016.” , said Jared Chaney, director of communications for Medical Mutual.

As part of the agreement and to ease the transition, HealthSpan is approving Medical Mutual as a replacement operator.

“Medical Mutual has plans with comparable coverage based on rates, benefits, and provider network, which the plan says is likely to include the same physicians offered by the HealthSpan network,” Chaney said. “We will work hard to transfer as many HealthSpan members to us as possible. We think we will be a great choice for them.

Copyright 2022 The Business Journal, Youngstown, Ohio.