Community Care to affiliate with Ohio Medicaid health plan

Editor’s note: This story was updated Sept. 19, 2024 at 10:05 a.m. CT to reflect that the transaction is expected to close next year. 

Brookfield-based Community Care, one of the managed care organizations serving some of the state’s Medicaid long-term programs, is seeking to become an affiliate of CareSource, a Dayton, Ohio-based insurer that runs one of the largest Medicaid health plans in the country.

The deal is pending state and federal regulatory approvals, according to a Wednesday statement.

Community Care serves Family Care, Family Care Partnership and the Program of All-Inclusive Care for the Elderly. It operates three adult day and health centers in Milwaukee, Racine and Waukesha.

CEO Kenneth Munson said that the long-term care landscape has changed in Wisconsin, making it more difficult for regional nonprofits to operate financially and encouraging consolidation.

“When considering the idea of merging, the executive leadership team and the board of directors felt it was critical that we partner with an organization, ideally a nonprofit, whose values aligned with ours and put members and employees first,” Munson said. “We found such a partner in CareSource, and this relationship will allow us to stay competitive, to continue providing excellent care to our members, and to expand our mission to serve more vulnerable people in Wisconsin.”

Last year, two national for-profit health insurers, Molina Healthcare and Humana, bought two nonprofit, regional managed care organizations: My Choice Wisconsin and Inclusa.

Munson expects the transaction to close sometime next year.

Community Care and its workers will stay in Wisconsin, according to the statement.

“By bringing Community Care into the CareSource family, we combine the expertise of two mission-driven, nonprofit managed care organizations strengthening our capacity to innovate healthcare, improve outcomes and change lives,” CareSource CEO Erhardt Preitauer said.

CareSource has more than 2 million members and offers Medicaid, Affordable Care Act and Medicare plans. Earlier this year, it announced plans to pursue an affiliation with Common Ground Healthcare Cooperative, which serves the state’s ACA marketplace.

This article first appeared in the Wisconsin Health News daily email newsletter. Sign up for your free trial here.