CareSource completes affiliation with one of the last Affordable Care Act co-ops 

Photo: Bruce Leighty/Getty Images

CareSource in Ohio has completed the acquisition of Common Ground Healthcare Cooperative (CGHC), the only insurer to have continuously served the Affordable Care Act marketplace in Eastern Wisconsin since 2014, according to CGHC.

Common Ground Healthcare Cooperative offers individual and small-group exchange plans in 24 counties in Wisconsin. 

CareSource is a nonprofit, managed care organization with over 2 million members.

The transaction between the two nonprofits was effective on January 1, according to CareSource. 

The Wisconsin Office of the Commissioner of Insurance approved the affiliation after the Centers for Medicare and Medicaid Services Center for Consumer Information and Insurance Oversight allowed the agreement to move forward. 

WHY THIS MATTERS

The new affiliation will enhance the way the organizations serve their members, CareSource said. CGHC's operational capabilities and service offerings across the state will gain from CareSource's knowledge of government-sponsored managed care in Wisconsin.

Cathay Mahaffey has led CGHC since 2014 and will continue to lead in a new role as CEO, Common Ground Healthcare Cooperative and CareSource market president, Wisconsin. 

THE LARGER TREND

The Common Ground Healthcare Cooperative was among 23 Consumer Operated and Oriented Plans (co-op) established under the Affordable Care Act. It is one of three remaining consumer-operated and -owned health plans, according to CareSource.

Since its inception, CGHC has served the Wisconsin market by providing health insurance to individuals and families who typically cannot access health insurance through an employer. 

Prior to the CareSource affiliation, CGHC repaid a federal loan that helped them get started when the ACA was implemented. 

"We feel fortunate to have been selected as a loan recipient to start a member-focused, nonprofit health insurance company," said Mahaffey by statement. "It was always our intention to fully repay the loan and we're proud to fulfill our obligations."

ON THE RECORD

"We are proud to welcome Cathy Mahaffey to the CareSource leadership team," said Scott Markovich, executive vice president, markets and products at CareSource. "Both CareSource and CGHC share a member-focused philosophy with a proven track record. This is a natural partnership that will deliver even more value for the people of Wisconsin."
 

Email the writer: SMorse@himss.org