Baystate Calls Off Sale of Health New England to Point32 Health

SPRINGFIELD — Baystate Health has called off plans to sell it’s not-for-profit health insurer, Health New England, to Boston-based Point32Health.

Baystate and Point32Health announced the $165 million sale in February 2024, and it had received approval from state insurance regulators.

“After further analysis, Point32Health and Baystate Health will not be moving forward with the acquisition of Health New England,” Baystate noted in a statement. “Point32Health and Baystate Health will continue their in-network relationship for Point32Health Commercial, Medicare, and Exchange members in the Western Massachusetts region. We appreciate the support and thorough review from the regulators, and both organizations look forward to continuing to serve their respective members, patients, and communities throughout New England and Western Massachusetts.”

The announcement means Baystate Health and the affiliated physicians through Baycare Health Partners remain in network for Point32Health plan members. There is no change to current coverage, benefits, or provider network for members. Meanwhile, Health New England will continue to operate as usual, with no change to current coverage, benefits, or provider network for members.

Baystate Health will retain ownership of Health New England,” the health system explained, adding that “Baystate Health governance and senior leadership will be taking the next few months to evaluate the strategic positioning and performance of Health New England to inform future decisions.”