Mayo Clinic sells off health plan to Wisconsin’s WEA Trust
The Mayo Clinic-owned Health Tradition Health Plan was going to close—but it has been given new life by Madison, Wisconsin-based WEA Trust, which will buy the plan and its membership of about 7,000 people in southwestern and western Wisconsin.
It marks the not-for-profit WEA Trust’s first entry into the private employer insurance market, having offered group coverage for Wisconsin state employees since its founding in 1970.
“We are excited for this next step in our journey and to continue to provide high-quality provider access through the Health Tradition Health Plan” said Mike Quist, president and CEO of WEA Trust. “Throughout the past ten years, WEA Trust has transformed into an innovative, member-centric company. This new opportunity allows us to bring the same innovations and our top-rated customer service to another health plan in the state.”
Mayo’s administrator in the region, Joe Kruse, had previously said the Health Tradition plan would wind down operations over two to three years, blaming the difficulties of operating a small insurance plan in an uncertain and volatile insurance market.
Keeping the health maintenance organization (HMO) plan open through WEA Trust is a win for Mayo Clinic by maintaining a patient base for its Wisconsin clinics.
“This is good news for patients and employers in this region as it creates another choice for people who wish to receive their care at Mayo Clinic Health System locations in Wisconsin,” Kruse said in a statement. “Our organization has a longstanding, positive relationship with WEA Trust, which has extensive experience in providing high-quality health plans.”
Provider-sponsored health plans often need a much larger enrollment—around 400,000 covered lives by on estimate—to be sustainable. Other large hospital systems, such as New York’s Northwell Health, have shut down their insurance divisions in recent years.
John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.