Deal Still Pending Approval by Connecticut Insurance Department
Massachusetts insurance regulators have approved Point32Health’s proposed acquisition of Health New England, a subsidiary of Baystate Health that runs four hospitals in western Massachusetts.
Massachusetts Commissioner of Insurance Michael Caljouw approved the transaction on Nov. 14 but said the Connecticut Insurance Department must also vet the deal before it can close.
Springfield-based HNE offers insurance plans for 180,000 members in western Massachusetts, while Point32Health, which was created in 2021 by combining Tufts Health Plan and Harvard Pilgrim Health Care, covers about 1.9 million members in Massachusetts, Maine, Connecticut, New Hampshire and Rhode Island. The health plans signed a “definitive agreement” for the acquisition in mid-February.
Scott Walker, CFO of Point32Health, said acquiring HNE would improve access to behavioral health care and telehealth, drive savings through “operational efficiencies,” and create a more “affordable network with wider geographic reach,” according to the DOI decision circulated by the Massachusetts Health and Hospital Association on Monday. Point32Health does not intend to “liquidate HNE, sell any of its assets outside the ordinary course of business; or merge or consolidate HNE with any other person or persons,” the decision said.
Richard Swift, CEO of HNE, said the deal will enable the regional health insurer to overcome technology challenges, improve product offerings, and expand access to care, especially for “underserved populations.”
Walker and Swift say the deal is not expected to significantly lessen competition or create a monopoly in the health insurance marketplace.
Connecticut regulators must also review the acquisition. HNE owns HNE of Connecticut, which is licensed but not currently operating in the state, the decision says.
