Mountain States Health Alliance (MSHA) confirmed last week that it will shut down health insurance company CrestPoint Health.
CrestPoint’s closure will affect an undeterminable number of policyholders who chose the health insurer as their Medicare Advantage coverage. The termination of CrestPoint’s Medicare Advantage Plan will be effective June 1.
According to a report from WJHL News, MSHA’s board chose to halt CrestPoint’s operations to “focus on the core mission of running hospitals, recruiting and keeping physicians, and improving technology.”
“The decision to enter the insurance business was made several years ago, and was made during a time of great uncertainty for hospitals,” MSHA CEO Alan Levine said. “As time has passed, it has become more clear the risk of running an insurance business is simply not necessary in order for us to succeed in this environment. Our success will come from doing what we do well.”
“This week, letters are being sent to CrestPoint Medicare Advantage members notifying them of our mutual decision with the U.S. Centers for Medicare and Medicaid Services (CMS) to cease operations of CrestPoint,” wrote Levine in a letter addressed to employees.
Levine revealed that MSHA is cooperating with the federal government to offer “very high quality plans” for its Medicare Advantage customers. He also shared that the company is directly communicating with its members.
Effective July 1, MSHA employees will move to Blue Cross Blue Shield of Tennessee.
