TOLEDO, Ohio — ProMedica is planning to sell off Paramount Health, a health insurance subsidiary, to Medical Mutual, an Ohio-based health insurance company.
According to a spokesperson from ProMedica, a definitive agreement has been signed and is waiting on regulatory approval. The sale is expected to close by May 1.
Medical Mutual said in a press release that they are currently working through transition plans with Paramount, but expect to welcome those employees into its organization when the transaction closes. The company also said that there will be "no immediate change to how current members do business with either company."
ProMedica said in a statement that they do not expect any changes to members' health insurance plans or processes in 2024 and will still use their same Paramount ID cards, call the same member services department and have access to the same providers and hospitals.
“As ProMedica has further sharpened its focus on core health system operations, we embarked on a thoughtful process to transition ownership of our Paramount health insurance business,” said Arturo Polizzi, President and CEO of ProMedica. “We were hopeful we could identify a potential new owner with a similar mission and commitment to community, and we found those qualities in Medical Mutual. The company has a long history of providing various health insurance plans, and we expect that Paramount employees transitioning to Medical Mutual will be well positioned to continue providing exceptional service to members and employers.”
“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,” said Steve Glass, Medical Mutual’s President and CEO. “Paramount, like Medical Mutual, is renowned for its outstanding local care and excellent service. Having this quality organization join the Medical Mutual family of companies presents a unique opportunity to strengthen our position as a trusted healthcare navigator in Ohio.”
A spokesperson with ProMedica said that Medical Mutual has "committed to maintaining at least a portion of the current downtown Toledo offices for a period of time after closing."