SOURCE: Health Alliance Plan

September 19, 2011 09:00 ET

Health Alliance Plan Announces Intent to Acquire Midwest Health Plan

DETROIT, MI--(Marketwire - Sep 19, 2011) - Health Alliance Plan (HAP) announces today a definitive agreement to acquire Midwest Health Plan (MHP), a for-profit Medicaid HMO with 74,000 members based in Dearborn, Mich. The acquisition is pending federal and state regulatory approvals.

HAP intends to maintain MHP as a separate, wholly owned subsidiary under the proposed agreement. Dr. Mark Saffer, the founder of MHP, will maintain his position as President. Midwest Health Plan will continue to operate under the same name in its Dearborn headquarters. MHP members' access to providers, coverage and service will continue uninterrupted. No job losses are anticipated at either company as a result of the acquisition.

"The strategic alliance with Midwest Health Plan will provide HAP with access to Michigan's growing managed Medicaid market. We are pleased to enter this market by investing in a Michigan-based company," said HAP President and Chief Executive Officer William R. Alvin. "MHP has a reputation for excellent leadership and a talented workforce. This acquisition positions HAP with the ability to serve the growing health insurance needs of the southeast Michigan market."

Dr. Mark Saffer said he was pleased to enter into a strategic alliance with a highly respected commercial health plan. "Ever since Midwest Health Plan was founded in 1993, we have maintained a commitment to high-quality service to our members. Joining HAP and fulfilling its strategic needs for a managed Medicaid operation while ensuring continuity for our employees, members and providers is an extraordinary opportunity."

Both companies have a reputation for excellent customer service. HAP ranked "Highest in Member Satisfaction among Commercial Health Plans in Michigan" for the fourth consecutive year, according to the J.D. Power and Associates 2011 U.S. Member Health Insurance Plan Study(SM). Midwest ranked 18th among the top 50 Medicaid plans nationally, according to the National Committee on Quality Assurance.

This acquisition will favorably position HAP and MHP to compete in the growing Medicaid market. Michigan's Medicaid program, which today serves about 1.5 million persons, is expected to reach 2 million individuals by 2014 under expanded eligibility standards in the Patient Protection and Affordable Care Act. The strategic alliance also gives HAP and MHP an increased footprint in serving the "dual eligible" population, those individuals who are eligible for both Medicare -- which HAP provides -- and Medicaid.

"Our two companies share a common vision for the future," said Alvin. "Together we are committed to innovation and excellence in managed care through fiscally responsible programs that assure access to high-quality medical services to customers in our commercial and government programs."

About Health Alliance Plan (
Health Alliance Plan (HAP) is a Michigan-based, nonprofit health plan that provides health coverage to nearly 500,000 members and companies of all sizes. HAP is celebrating 50 years of partnering with leading physicians and hospitals, employers and community organizations to improve the quality of health care and enhance the health and well-being of the lives we touch. HAP offers PPO, HMO, Value and Medicare plans with award-winning preventive services, disease management, wellness programs and customer service. The National Committee for Quality Assurance awarded HAP's commercial HMO and HAP Senior Plus Excellent Accreditation.

About Midwest Health Plan (
Midwest Health Plan was founded in 1993 and has received "Excellent" accreditation through 2012 by the National Committee for Quality Assurance. Midwest has more than 74,000 Medicaid enrollees in Wayne, Washtenaw, Macomb, Livingston and St. Clair counties. Members receive the same services, benefits and conditions as traditional Medicaid. Midwest is committed to providing excellence in managed care product lines to the residents of the State of Michigan, through fiscally responsible programs that assure access to and the delivery of cost effective/quality medical services.

Documents and/or Photos available for this release:
William R. Alvin, President and Chief Executive Officer, Health Alliance Plan
Dr. Mark Saffer, President, Midwest Health Plan
To view supporting documents and/or photos, go to and enter Release ID: 309085