Managed health care company Coventry Health Care, Inc. announced Monday that it plans to purchase the parent company of QualChoice of Virginia Health Plan, Inc.
QualChoice is the University-sponsored health care plan for students who do not have their own health insurance and is the plan provided for staff members.
As part of the definitive agreement, Coventry will pay the Medical Center and the University Health Services Foundation $12.5 million for Blue Ridge Health Alliance, Inc. and its HMO subsidiary, QualChoice, and will enter into a five-year provider contract with the University.
"University employees will continue to receive their health insurance coverage through the U.Va. Self Insurance Health Plan," said Leonard W. Sandridge, University executive vice president and chief operating officer. "The only change is that Coventry Health Plan will provide claims processing services rather than QualChoice. Students who have coverage under a U.Va. QualChoice health insurance plan will continue to have that plan through the new owner, Coventry."
The companies still are waiting for the Virginia Bureau of Insurance to review the transaction to make sure it meets all the requirements. Fran Soistman, Coventry's senior vice president said he hopes the Bureau of Insurance will approve the transaction by Sept. 1.
Until then, he said it is difficult to say whether the cost of the insurance plans will change much and what type of reorganization the administrations in Richmond and Charlottesville with need, Soistman said.
"The coverage that they have will continue," Soistman said. "We'll also be able to offer more health benefits. They can count on outstanding care."
Soistman said he hopes to manage the cost of the operation while improving the quality of care.He said he expects to see a slight reduction in jobs in the short-term, but Coventry wants to increase jobs in the future.
"The University's ownership had served its purpose," Sandridge said "Like many academic health systems around the country that have sold their health maintenance organizations in the past 24 months, U.Va. decided to focus on what is does best, teaching and caring for patients."
In the merger, Coventry, located in Maryland, will acquire 110,000 new members from southwest and central Virginia, including University staff and students who have QualChoice insurance plans.
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