Lakeland Care seeks affiliation with CareSource

Lakeland Care, a Fond du Lac-based managed care organization serving a Medicaid long-term care program, is seeking to affiliate with CareSource, an Ohio-based nonprofit insurance company.

The two organizations said that the state’s aging population is increasing demand for long-term care services, while financial challenges have made it harder for regional nonprofits to operate.

“Together, we can more effectively deliver the support that our community deserves,” Lakeland CEO Sara Muhlbauer said in a statement Monday.

Lakeland offers long-term care to older adults and adults with disabilities through the state’s Family Care program. It serves more than 7,300 members in 31 counties.

CareSource counts more than 2 million members through Medicaid, Medicare and Affordable Care Act plans.

The announcement marks the third deal CareSource has sought in Wisconsin. At the start of the year, it acquired Common Ground Healthcare Cooperative, which serves the state’s ACA marketplace.

Last September, CareSource announced a plan to affiliate with Community Care, another Family Care managed care organization that competes with Lakeland in some regions of the state. That deal is going through the regulatory approval process.

“Growing our family of companies with like-minded, mission-driven organizations, like Lakeland Care, is key to increasing our collective impact on those who need us most,” said CareSource CEO Erhardt Preitauer.

The state’s other managed care organizations, Inclusa and My Choice Wisconsin, are owned by for-profit Humana and Molina Healthcare, respectively.

The leaders of Lakeland and Community Care said in fall 2023 they were in talks with potential partners, following the acquisitions by Humana and Molina.

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