Harvard Pilgrim Health Care and Tufts Health Plan Combination Questions and Answers
As you know, Harvard Pilgrim and Tufts Health Plan announced their intention to combine companies. Both organizations will continue to operate independently until the agreement is finalized. Below is a Q&A to help you stay updated on the status of the combination.
As always, we remain committed to serving you and your clients. Please contact your account executive if you have any questions.
1. How is the COVID-19 outbreak impacting the timing of the combination?
While the impact of the COVID-19 outbreak is still uncertain, to date it has not impacted our progress or timeline for the combination.
2. Why are Harvard Pilgrim and Tufts Health Plan combining? What value will the new company bring to the marketplace?
The combination of Harvard Pilgrim and Tufts Health Plan brings together two highly regarded health care companies known for delivering excellence in quality, service, innovation and commitment to the community. Leveraging the individual strengths and “best in class” capabilities of our organizations, the new company seeks to improve the health of our communities and redefine the role a health plan plays in expanding access, containing costs, and assuring better health outcomes to the customers and the communities we serve.
3. Where do Harvard Pilgrim and Tufts Health Plan stand currently within the combination process?
Harvard Pilgrim and Tufts Health Plan announced their agreement to combine in August after a unanimous decision was approved by both boards. Since that time, both organizations have been working together on integration planning for creating a new combined organization. We have also been participating in multiple local and federal regulatory approval processes that need to be complete in advance of closing the transaction. These processes include obtaining approvals from the federal Department of Justice and then each state’s Attorneys’ general office and departments of insurance. Harvard Pilgrim and Tufts Health Plan are currently in the process of obtaining these approvals. Until those approval processes are finalized and the transaction is closed, both organizations remain independent companies and continue to operate as such.
4. What will happen if I have a renewal or new business account for Harvard Pilgrim right before the transaction close or soon after?
Always, we will honor all contracts and proposals for the applicable contract period. If you sell a new group with Harvard Pilgrim, that plan will remain in effect for the entire contract period. Similarly, any renewals released or sold prior to the close date will be honored.
5. Will there be any member impact at date of close?
No. Assuring excellent customer service and experience is our top priority. Members will continue to access information and services through their existing member portal and contact each company via the same member services phone numbers as they use today. Member ID cards will not change, and they will continue to access health care services, provider networks and benefits without interruption.
6. What will happen to my 2020 Harvard Pilgrim broker compensation program?
Both companies have agreed to maintain their 2020 broker compensation programs and incentives for the remainder of 2020, even if the transaction close date occurs before the end of the current calendar year, which we anticipate being in the third quarter.
7. How often will Harvard Pilgrim communicate with brokers pre- and post-close?
As previously communicated, Harvard Pilgrim intends to provide updates along the way until the transaction closes. Once we become a combined company, we will share our new rules of engagement and integration plans with you as they are finalized.