CareSource Acquires Common Ground Healthcare Cooperative in Wisconsin

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CareSource, a nonprofit managed care organization based in Ohio, has successfully completed the acquisition of Common Ground Healthcare Cooperative (CGHC), the only insurer that has been serving the Affordable Care Act marketplace in Eastern Wisconsin since 2014.

Common Ground Healthcare Cooperative offers individual and small-group exchange plans in 24 counties in Wisconsin. The acquisition, effective as of January 1, marks a significant milestone for both organizations.

With over 2 million members, CareSource aims to enhance its service offerings and operational capabilities in Wisconsin through this partnership with CGHC.

Enhanced Member Services

The affiliation between CareSource and CGHC is expected to bring about improvements in the way both organizations serve their members. CareSource’s expertise in government-sponsored managed care in Wisconsin will complement CGHC’s existing operational capabilities and service offerings across the state.

Cathay Mahaffey, who has been leading CGHC since 2014, will continue in a new role as CEO of Common Ground Healthcare Cooperative and CareSource market president for Wisconsin.

Industry Trend

Common Ground Healthcare Cooperative was one of the 23 Consumer Operated and Oriented Plans (co-op) established under the Affordable Care Act. It is now one of the three remaining consumer-owned and -operated health plans in the country.

Since its establishment, CGHC has been providing health insurance to individuals and families in Wisconsin who do not have access to employer-sponsored health insurance. Prior to the acquisition by CareSource, CGHC successfully repaid a federal loan that supported its launch during the implementation of the ACA.

In a statement, Mahaffey expressed gratitude for the opportunity to repay the loan and emphasized CGHC’s commitment to being a member-focused nonprofit health insurance company.

Leadership Perspective

Scott Markovich, executive vice president of markets and products at CareSource, welcomed Cathy Mahaffey to the CareSource leadership team. He highlighted the shared member-focused philosophy of both organizations and the potential for delivering enhanced value to the people of Wisconsin through this partnership.

Overall, the acquisition of Common Ground Healthcare Cooperative by CareSource represents a strategic move to strengthen healthcare services and support for members in Wisconsin.

Email the writer: SMorse@himss.org