Massachusetts' insurance commissioner has approved the sale of Springfield-based Baystate Health's insurance subsidiary, Health New England, to Point32Health for $165 million.
Point32Health is the parent company of two nonprofit health plans, Harvard Pilgrim Health Care and Tufts Health Plan. Health New England has around 180,000 Medicare, Medicaid and commercial members in Western Massachusetts. Point32Health has 1.9 million members in Massachusetts, Rhode Island, Connecticut, New Hampshire, and Maine.
In February, the deal was unanimously approved by the boards of both organizations. The proposal must still be approved by Connecticut regulators.
In the Nov. 14 acquisition order for Massachusetts, Point32Health president and CFO Scott Walker said the transaction will enhance healthcare service, including improved access to behavioral health, telehealth, and complete care services; lead to cost savings through operational efficiencies and management of administrative costs; drive improvements in population health, quality, behavioral health, and health equity; and result in a more affordable network with wider geographic reach.