One insurer is getting sole custody of a health insurance business it was running with another insurer.
Health Net Inc., Woodland Hills, Calif., is acquiring full control over Healthcare Solutions from Guardian Life Insurance Company of America, New York.
Health Net ended up with an interest in Healthcare Solutions when it acquired another health insurer in 1997. The joint venture has been selling health coverage to employers with 2 to 50 employees in Connecticut, New Jersey and New York.
Health Net has supplied the providers, Guardian has handled distribution, and the companies have shared administrative duties, Health Net says.
Terms of the new deal with Guardian were not announced, but Health Net says it hopes to get regulatory approval to consummate the transaction by Sept. 30.
After the deal is completed, Health Net will use the Healthcare Solutions brand and retain the Healthcare Solutions medical product membership, Health Net says.
Health Net will handle all administrative duties.
Guardian will continue to be a nonexclusive distributor for Healthcare Solutions products
Guardian’s non-medical plans were not part of the joint venture and are unaffected by the change, Health Net says.