Health Alliance Program Offers Buyout to Its Senior Employees
Henry Ford Health System’s general insurer, Health Alliance Plan, offers buyout services to employees 55 and older.
Chief executive Michael Genord told Crain’s in a statement there was no target total for the voluntary program, but it was expected to be completed by the end of June.
Genord said the acquisition was not a direct cost-saving measure, but rather an effort to restructure some businesses.
“While the magnitude of the economic impact of the ongoing COVID-19 pandemic is unprecedented, the strategic decision to provide this voluntary package is based on the fact that it will allow us to restructure some of our teams and focus resources where they are most needed. A place to help serve our members,” said Jarrod. “Due to the work/life challenges of the ongoing pandemic, some team members have inquired about the possibility of early retirement. We believe this plan will help meet the needs of some employees while providing the organization with additional flexibility.”
Gernold did not elaborate on his retirement or the reasons for his retirement.
HAP has been expanding its statewide reach through partnerships and acquisitions over the past few years.
In 2019, it acquired Detroit-based Medicaid program Trusted HP-Michigan, giving the insurer 9,000 members.
Last year, HAP partnered with MSU Health to expand its Medicare Advantage program to MSU alumni. The deal allows HAP to offer its Medicare Advantage plans to up to 100,000 MSU graduates and their families in 36 counties. Henry Ford Health is now also affiliated with MSU.
HAP partnered with Muskegon-based Mercy Health in 2019 to offer Medicare Advantage plans to retirees and others over age 65 in Kent, Muskegon, Ottawa and Oceania counties. It added Berrien, Branch, Calhoun, Cass, Kalamazoo, St. Joseph and Van Buren counties in 2020.
Currently, HAP has 85,000 members in its Medicare Advantage plans, of which approximately 24,000 are from the UAW Retiree Medical Benefit Trust.
This story first appeared in our sister publication, Crain’s Detroit business.