The parent company of Harvard Pilgrim Health Care and Tufts Health Plan has announced it signed a definitive agreement with Baystate Health to acquire its subsidiary, Health New England.

Point32Health, a health and well-being organization based in Canton, acquired the health plan through an agreement that was approved by the Point32Health and Health New England boards of directors and signed in February.

Kathleen Makela, public relations director at Point32Health, said discussions were held for several months and the acquisition requires regulatory approval. She said the acquisition “will harness the strengths of both organizations and bring value to Health New England members and the broader community” by combining complementary strengths, administrative efficiencies and a broader product offering that will offer greater value to consumers.

“Preserving and enhancing strong, high-quality, not-for-profit health plans is critical for Massachusetts health care,” Point32Health President and CEO Cain A. Hayes said in a statement. “As the only two health plans in the state that serve commercial, Medicaid and Medicare populations, we have the commitment and expertise to serve people of all socioeconomic backgrounds, especially the underserved, and to improve quality of life through programs and services that improve whole person health.”

Health New England, based in Springfield, offers a range of plans in the commercial, Medicaid and Medicare markets and serves approximately 180,000 members concentrated in western Massachusetts. Point32Health offers employer-sponsored plans and Medicare and Medicaid plans, as well as plans on the state exchange and plans for those who are dually eligible for those government programs. According to Point32Health, it serves 1.9 million members in Massachusetts, Maine, Connecticut, New Hampshire and Rhode Island.

Makela said the acquisition will also expand access to care for underserved populations, preserve not-for-profit options through extensive experience in serving these populations and advance the quality of health care members receive.

“It is vitally important to the communities that we serve that Health New England and its programs continue to grow and evolve,” Dr. Mark Keroack, CEO of Baystate Health, said in a statement. “Point32Health is a vibrant organization and is widely recognized for the quality of its products, strength of its network and commitment to underserved populations. Point32Health offers resources necessary to support Health New England members by advancing its efforts to support wellness, population health and disease management throughout the region.”

Reach Domenic Poli at: dpoli@recorder.com or
413-930-4120.