Tufts, Harvard Pilgrim Agree to Merge

Harvard Pilgrim Health Care and Tufts Health Plan on Wednesday inked an agreement to merge, a marriage that would bring together the Commonwealth’s second and third largest insurers, creating a powerhouse to rival Blue Cross Blue Shield of Massachusetts.

Tom Croswell, president and CEO of Tufts Health Plan, will serve as CEO of the new organization. Michael Carson, president and CEO of Harvard Pilgrim, will serve as president, overseeing “the organization’s diverse business lines and subsidiaries,” according to a release.

“Our communities and consumers today face four major hurdles in health care: affordability, access, quality of health and a fragmented health care experience across various stakeholders and health systems. Through our shared vision, we believe we can tackle these issues and bring more value to the communities we serve,” said Croswell in a statement.

The plan was unanimously voted on by the boards of both organizations. The new combined entity does not yet have a name.

The deal would bring together Tufts Health Plan’s 2,841 employees and also approximately 1.16 million members with Harvard Pilgrim’s 1,182 employees and approximately 1.16 million members. Together, the insurers will have members in Massachusetts, Maine, Connecticut, New Hampshire and Rhode Island.