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Michigan health insurers to merge

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Nonprofit health insurers HealthPlus of Michigan and Health Alliance Plan on Monday said they have agreed to merge effective Jan. 1, 2016.

A spokeswoman for Detroit-based Health Alliance Plan said terms of the deal were not disclosed.

The companies announced in early October a letter of intent to merge operations and have been in an “intense period of due diligence” since then, the insurers said in a joint statement.

Health Alliance Plan currently has a health plan membership of 680,000, and Flint, Michigan-based HealthPlus' total membership is 120,000. The merger will create one of the largest health insurers in Michigan, according to the statement.

Following the merger, both firms will retain their names and continue to operate in their existing locations, the spokeswoman said.

It is unclear who will take over leadership of the combined organization, the spokeswoman said, as the firms are now beginning to determine how to integrate.

“This is a win-win situation,” said James Connelly, president and CEO of Health Alliance Plan, who announced he would retire as CEO at the end of the year.

“It's a win for both HealthPlus and HAP because it creates a larger, stronger, more competitive company with a solid portfolio of comprehensive products and opportunities for growth,” Mr. Connelly said.

“Both companies bring a sense of stewardship to community health, their employees and especially to their valued members,” Dr. Michael Genord, HealthPlus president and CEO, said in the statement. “We're looking to build on the shared strengths of HealthPlus and HAP.”