The CEOs of two merging health plans in Massachusetts said their combination will benefit consumers in the state and help the insurers compete with national payers, according to The Boston Globe.
Tom Croswell, CEO of Tufts Health Plan, and Michael Carson, CEO of Harvard Pilgrim Health Care, told the publication their proposed merger will allow them to expand in certain markets, create a more friendly digital experience for its members and make insurance premiums more affordable.
“We do think there’s an opportunity for us to improve the affordability of the products that we offer,” Mr. Croswell told The Globe. “We can’t control hospital prices or pharmaceutical prices, but we do think we can have a real impact.”
The predictions come despite several recent analyses from economists that have found less competition among health insurers actually increases premiums. Still, the CEOs said there was a sense of urgency to merge the nonprofits to stay competitive with national for-profit insurers like UnitedHealthcare and Anthem.
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They added the merger will likely result in some layoffs, according to the publication.
Source: Becker’s Hospital Review