UnityPoint Health, HealthPartners to launch new insurance company
West Des Moines-based health system UnityPoint Health and HealthPartners, a Minnesota-based nonprofit health maintenance organization, announced plans to launch a new insurance company next year that will offer Medicare Advantage plans in Iowa and Illinois beginning in 2017.
The partnership, named HealthPartners UnityPoint Health, will leverage UnityPoint Health’s network of providers with HealthPartners’ scale, health plan sophistication and expertise, the companies said in a release. UnityPoint and HealthPartners will equally own and govern the insurance entity.
“This is a very exciting time for not only our organizations, but for the people of Iowa and Illinois,” said Troy Caraway, UnityPoint Health senior vice president. “We want to provide a new option that provides more value to individuals and employers. The closer we can bring the insurer and health care provider together, the greater opportunity we have to coordinate care more efficiently.”ntly.”
“We share a goal to help people live healthier lives and access high quality, affordable care,” said Andrea Walsh, HealthPartners executive vice president and chief marketing officer. “Together, we will provide insurance products, services and tools to support personal health and well-being.”
Caraway, who joined UnityPoint Health in July 2014 to lead its new health insurance division, is also CEO of Physicians Plus Insurance Corp., a Madison, Wis.-based health insurer that UnityPoint purchased in 2014.
In a phone interview with the Business Record, Caraway said the new joint venture allows UnityPoint to expand health insurance operations into Iowa and Illinois while maintaining its commitment to Physicians Plus in the Wisconsin market.
“We looked at a variety of options,” Caraway said. “HealthPartners really stood out to us. Culturally they are a really nice fit for us. We are both multi-state, multi-billion-dollar organizations, and we are both experienced at providing broad coverage. … And HealthPartners has experience and existing relationships within the (Iowa) market – so there was a lot of synergy we could pick up by choosing them.”
The Medicare Advantage niche represents the fastest-growing market for health insurance, and one that’s still under-served in Iowa, he said. “It’s a significant opportunity in the market, from our perspective.”
The goal of the joint venture is to offer greater consumer choice, beginning with competitive Medicare Advantage plan options in Iowa and Illinois that support the triple aim to improve health, patient experience and affordability, the companies said. The new company will accelerate both organizations’ ability to improve care and coverage for the members and communities they serve.
HealthPartners UnityPoint Health is seeking insurance licenses in Iowa and Illinois, and it plans to launch operations in 2016, pending regulatory approvals. Initial products of the joint venture will include Medicare Advantage (pending approval) for the plan year beginning Jan. 1, 2017, with the potential for additional products.
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