US health insurance company Medical Mutual has confirmed plans to acquire regional peer Paramount Health, which is owned by ProMedica.
Paramount, set up in 1988, is headquartered in Toledo, Ohio, and operates primarily in Ohio and Michigan, US.
It specialises in offering a range of insurance plans including Medicare Advantage, Individual ACA, commercial group and short-term insurance, with more than 77,000 health and 308,000 dental plan members across six Midwest states.
Upon deal completion, anticipated by 1 May 2024, the health insurer will operate as a fully owned subsidiary of Medical Mutual.
The transition is expected to be seamless for current members, with no immediate changes to their interactions with either company, Medical Mutual added.
Financial terms of this transaction were not disclosed.
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Currently, Medical Mutual and Paramount are developing transition plans, with Medical Mutual set to integrate Paramount employees into its operations post-acquisition.
Medical Mutual’s branded products and services will continue to be available in north-west Ohio, including access to ProMedica’s provider networks.
The inclusion of all ProMedica primary care providers, specialists, hospitals and outpatient care clinics in Medical Mutual’s commercial group, Medicare Advantage, and Individual ACA provider networks signifies a strengthened partnership between the two entities.
This deal is currently awaiting regulatory clearance.
Medical Mutual president and CEO Steve Glass said: “This acquisition aligns two companies that share a lot more than just being headquartered in Ohio.
“Paramount, like Medical Mutual, is renowned for its outstanding local care and excellent service. Having this quality organisation join the Medical Mutual family of companies presents a unique opportunity to strengthen our position as a trusted healthcare navigator in Ohio.”
ProMedica president and CEO Arturo Polizzi added: “As ProMedica has further sharpened its focus on core health system operations, we embarked on a thoughtful process to transition ownership of our Paramount health insurance business.”