Independent Health, a not-for-profit health insurer based in Buffalo, New York, will join MVP Health Care, another not-for-profit insurer, under a new affiliation agreement. The deal, which is pending regulatory approval, brings together two health insurers serving nearly one million members across New York and Vermont. The combined entity will generate $7 billion in annual revenue and employ over 3,000 people. The affiliation aims to align the strengths of both companies and deepen their commitment to improving healthcare in the region.
According to Michael W. Cropp, President and CEO of Independent Health, the affiliation will allow the company to innovate and stay true to its community-focused approach while preparing for future challenges in healthcare. Chris Del Vecchio, CEO of MVP Health Care, stated that the move is about creating a future-focused healthcare system that empowers individuals to live their healthiest lives.
The affiliation comes as Independent Health reported a loss of $66 million in 2024, despite revenue of $2.5 billion. MVP Health Care, on the other hand, appears to have a healthy balance sheet with excess revenue. The companies will likely seek to generate efficiencies and growth opportunities, including expanding their pharmaceutical benefits business.
While the affiliation may lead to some job losses, Dr. Cropp emphasized that there are no immediate plans for significant workforce reductions. Instead, the company sees opportunities for growth, particularly in the pharmaceutical benefits side of the business. However, some observers note that a larger affiliated entity may have better leverage in dealing with prescription drug manufacturers and healthcare providers, potentially benefiting clients.
The deal has raised concerns about the potential loss of local focus and customer service. Larry Zielinski, former Buffalo General Hospital President, noted that customers often prefer dealing with local companies that are responsive to their needs. However, Independent Health has assured that it will be business as usual for members, providers, employers, and partners, with no immediate changes to coverage, benefits, or local service.
The affiliation agreement is subject to approval by government regulators. If approved, the deal is expected to create a stronger, more competitive health insurer in the region, better equipped to meet the growing needs of its members and communities.