Posted on March - 04 - 2011
Harvard Pilgrim, Tufts Health call off merger, say savings not easy to achieve
BOSTON – Massachusetts No. 2 and No. 3 health insurers – Harvard Pilgrim Health Plan and Tufts Health Plan – have called off their plans to merge, according to the Boston Globe. The plan, revealed in January, would have created a more robust competitor to Blue Cross Blue Shield of Massachusetts, the state’s dominant health insurer, with a combined 1.75 million members, compared with Blue Cross’s 3 million members.
The insurers have been negotiating since January, and, according to the Globe, “have now determined that we are stronger as individual competitors than one company,” the newspaper quoted Eric Schultz, president of Harvard Pilgrim, as saying.
James Roosevelt Jr., president and CEO of Tufts, was quoted as saying that the two insurers were “not fully compatible without significant changes to existing processes and applications.”
Last week Tufts announced that it was in talks to become the majority owner of Cambridge Health Alliance’s managed health care plan, Network Health.
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