CLEVELAND, Ohio – Medical Mutual and Toledo-based Paramount Health Care announced their agreement for Medical Mutual to acquire Paramount Health Care, a health insurance company operating in Ohio and Michigan. The acquisition, pending regulatory approval, is expected to be finalized by May 1.
Paramount Health Care offers a variety of health insurance plans, including Medicare Advantage, individual plans under the Affordable Care Act, commercial group, and short-term insurance plans. With over 77,000 health plan members and 308,000 dental plan members, Paramount Health Care is owned by the health and wellness non-profit ProMedica.
Medical Mutual, on the other hand, is one of the oldest and largest health insurance providers in Ohio, serving over 1.2 million Ohioans. The company’s president and CEO, Steve Glass, expressed excitement about the acquisition, stating, “This acquisition aligns two companies that share a lot more than just being headquartered in Ohio. We share a common vision – to help people live healthier.”
The decision to sell Paramount Health Care was made by ProMedica to focus on its core health operations, according to Arturo Polizzi, the company’s president and CEO. ProMedica sought a new owner with a similar mission and commitment to the community, ultimately finding those qualities in Medical Mutual.
Medical Mutual expects to welcome Paramount employees into its organization once the transaction is complete. The new ownership is not expected to have an immediate impact on customers of either company, with Paramount Health Care planning to continue offering its current health plans as a wholly owned subsidiary of Medical Mutual.
In addition, Medical Mutual plans to continue delivering its own branded products and services in the Northwest Ohio area, providing access to robust provider networks that include the ProMedica health system. All ProMedica primary care providers, specialists, hospitals, and outpatient care clinics – part of many Medical Mutual commercial group networks – will now be part of the company’s Medicare Advantage and Individual ACA provider networks.
The agreement between Medical Mutual and Paramount Health Care marks a significant shift in the healthcare landscape in Ohio and Michigan, with the potential to strengthen access to quality healthcare for individuals and communities in the region.