Cathy Mahaffey is CEO of Common Ground Healthcare Cooperative and president of CareSource’s Wisconsin market. Dayton, Ohio-based CareSource closed on its acquisition of the company in January.
The affiliation will boost Common Ground’s product offerings in Wisconsin, Ms. Mahaffey said.
“We had been searching for a like-minded, nonprofit partner that shared a commitment to our members and we found the perfect fit with CareSource,” Ms. Mahaffey wrote in an email to Becker’s. “We are proud of the progress we’ve made for the last 13 years but knew we needed more resources and support to continue growing and providing coverage options for Wisconsin.”
Common Ground Healthcare Cooperative provides individual and small group exchange plans in 24 Wisconsin counties, and was one of the last remaining ACA co-op plans. In 2012, 23 consumer-owned individual plans launched, backed by funding provided by the ACA. The federal government pulled much of the allocated funding in 2015, causing most plans to shut down, according to a 2019 Politico report.
Just two of these plans remain, now that Common Ground has joined CareSource.
The company’s co-op roots will continue to guide it going forward, Ms. Mahaffey said.
“Co-ops are focused on creating plans that make health insurance more affordable and competitive, putting members first, not profits or shareholders,” Ms. Mahaffey said. “That is one of the most important alignments we share with CareSource and that approach is key to our partnership, and will continue to be our north star as we transition out of the co-op program.”
CareSource has expanded its reach through other acquisitions in recent years. The nonprofit insurer has more than 2.3 million members in Medicaid, ACA and Medicare Advantage plans.
In November, CareSource closed the acquisition of Radiant Alliance, a nonprofit senior care organization. The Ohio-based company employs more than 1,400 people. In 2023, CareSource launched a joint venture with Health Alliance Plan, a subsidiary of Detroit-based Henry Ford Health, to expand the system’s Medicaid offerings.
Ms. Mahaffey has been CEO of Common Ground Healthcare Cooperative since 2014. She was appointed president of CareSource’s Wisconsin market when it joined CareSource.
Increasing costs are one of the top issues facing the individual market, Ms. Mahaffey told Becker’s, and the company will partner with CareSource to find solutions.
“Rising costs continue to be a concern, and we are steadfast in our advocacy for greater affordability on behalf of our members,” she said.