Henry Ford Health System’s Health Alliance Plan offers a share buyback to employees aged 55 and over.
The voluntary program does not have a target amount, but it is expected to be completed by the end of June, CEO Michael Genord told Crain’s.
Genord said the buyout was not a direct cost savings measure, but an attempt to restructure some operations.
“While the level of economic impact of the ongoing COVID pandemic has been unprecedented, the strategic decision to offer this voluntary package is based on the fact that it will allow us to restructure some teams and direct resources where they are most needed to help our members,” Genord said. “Due to work and personal life challenges caused by the ongoing pandemic, some team members were interested in the possibility of early retirement. We believe that this program will help meet the needs of some of the employees while providing additional flexibility for the organization. “
Genord did not go into details about the retirement or the reasons for it.
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HAP has spent the past few years expanding its footprint across the state through partnerships and acquisitions.
In 2019, it acquired Detroit-based Trusted HP-Michigan Medicaid Plan, providing the insurance company with 9,000 members.
Last year, HAP expanded its Medicare Advantage plans for Michigan State University graduates in partnership with MSU Health. The deal allows HAP to offer its Medicare Advantage plans to 100,000 MSU graduates and their families in 36 counties. Henry Ford Health is now also affiliated with MSU.
In 2019, HAP partnered with Muskegon-based Mercy Health to offer Medicare Advantage plans to retirees and others over 65 in Kent, Muskegon, Ottawa, and Oceana counties. Berrien, Branch, Calhoun, Cass, Kalamazoo, St. Joseph, and Van Buren counties were added in 2020.
HAP currently has 85,000 members in its Medicare Advantage plans, including about 24,000 from the UAW Retirement Health Benefits Trust.
This story first appeared in our sister publication, Crane’s Detroit business.