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Mass. insurer teams with United

NEWS IN BRIEF — Posted Aug. 7, 2006

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Regional health insurer Harvard Pilgrim Health Care has teamed up with national insurance giant UnitedHealth Group to offer insurance plans to local companies with employees based in other states.

The move fueled speculation among industry experts about UnitedHealth's interest in acquiring the regional insurer, but Harvard Pilgrim CEO Charles Baker said UnitedHealth has no interest in acquiring the company.

The new plan will be marketed under the names Choice Plus and Options. UnitedHealth will provide claims processing and computer systems, while Harvard Pilgrim will provide the networks and member services. The plans will be available starting Jan. 1, 2007.

With nearly 1 million members, the Massachusetts-based firm is the state's second-largest insurer.

This isn't the first time Harvard Pilgrim and UnitedHealth have joined forces to offer insurance plans.

In January 2005, Harvard Pilgrim began offering plans to national accounts in conjunction with UnitedHealth. With about 54,000 members, the plan, called Passport, is offered in Maine, Massachusetts and New Hampshire.

Unlike Choice Plus and Options, where Harvard Pilgrim takes a more hands-on approach, UnitedHealth handles most of the service functions for the Passport plan.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2006/08/07/bibf0807.htm.

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