CareSource has closed on its acquisition of Commonwealth Care Alliance.
Boston-based CCA was facing significant financial challenges, with its reserves falling more than $216 million below solvency thresholds, prompting Massachusetts officials to freeze enrollment for some of its health plans and develop contingency plans in case the company needed to shut down.
CCA has about 50,000 members and predominantly serves individuals dually eligible for Medicare and Medicaid. The company also operates care delivery programs, including primary care clinics. Now a part of CareSource, the company will continue to operate its Senior Care Options and One Care plans, along with its clinical delivery programs. CCA President and CEO Chris Palmieri will depart from the organization.
Dayton, Ohio-based CareSource serves more than two million Medicaid members across 13 states.
“The CareSource and Commonwealth Care Alliance partnership ensures residents of Massachusetts with complex health needs continue to have access to high-quality health care,” Erhardt Preitauer, president and CEO of CareSource, said in an April 9 news release. “I’m grateful to the Massachusetts Executive Office of Health and Human Services and Governor Healey for their support throughout this process and their commitment to ensuring that everyone in Massachusetts can enjoy healthier, more fulfilling lives. We look forward to collaborating with our CCA colleagues to build strong working relationships with partners in the Massachusetts provider and patient advocacy communities to deliver high-quality service and outcomes for those who are counting on us.”
