Last Updated: January 14, 2015
Information on the Proposed Acquisition of Control of MercyCare Insurance Company (MCIC) and MercyCare HMO, Inc. (MCHMO) (Collectively, the Wisconsin Domestic Insurers) by Interstate Alliance, Inc. (Applicant)
On December 26, 2014, Interstate Alliance, Inc. (Applicant) filed a plan to acquire control of the above-referenced domestic insurers, pursuant to the terms and conditions set forth in a System Formation Agreement (Agreement) dated October 23, 2014, by and between Mercy Alliance, Inc. (MAI) and Rockford Health System (RHS). MAI is a nonprofit Wisconsin holding company that was formed in 1989 to serve as the parent holding company for the Mercy Health System. RHS is a nonprofit Illinois holding company that serves as the parent holding company for the Rockford Health System. The Applicant, located in Rockford, Illinois, is an Illinois not-for-profit corporation that was organized on October 24, 2014, to serve as the parent organization that creates an affiliation between the Mercy Health System and the Rockford Health System.
Pursuant to the Agreement, the Applicant will acquire control of the Mercy and Rockford health systems by becoming the sole voting member of both health care systems in accordance with the terms and conditions set forth in the Agreement. Since MAI indirectly owns 100% of MCIC's outstanding stock, and MCIC owns 100% of MCHMO's outstanding stock, the proposed transaction would result in the Applicant's indirect control of the two Wisconsin insurers.
MCIC is a Wisconsin for-profit health insurer licensed under ch. 611, Wis. Stat. MCIC offers indemnity-type (POS) health plans to its commercial members in south central Wisconsin. MCIC is also licensed as a health insurer in Illinois.
MCHMO is a Wisconsin for-profit health maintenance organization (HMO) licensed under ch. 611, Wis. Stat. MCHMO offers comprehensive HMO plans to individuals and groups, and Medicare Select plans to individuals in south central Wisconsin.
As required by law, OCI will hold a public hearing concerning this application for acquisition of control.
Notations on Accessing Information
Financial information concerning individual insurance companies, including key annual statement pages, may be accessed on the Consumers Information Source section of the National Association of Insurance Commissioners' Web site at content.naic.org/consumer.htm.
Form A Application Filed on December 26, 2014
Application Correspondence
Applicant Response Cover Letters
-
First Applicant Response dated January 6, 2015, to OCI's Form A follow-up letter dated December 30, 2014 [REDACTED]
-
Second Applicant Response dated January 6, 2015, to OCI's Form A follow-up letter dated January 2, 2015
-
Third Applicant Response dated January 7, 2015, to OCI's Form A follow-up letters dated December 30, 2014, and January 2, 2015
-
Fourth Applicant Response dated January 8, 2015, to OCI's Form A follow-up letter dated January 5, 2015
-
Fifth Applicant Response dated January 7, 2015, to OCI's Form A follow-up letter dated January 5, 2015
-
Sixth Applicant Response dated January 8, 2015, to OCI's Form A follow-up letter dated January 5, 2015
-
Seventh Applicant Response dated January 7, 2015, to OCI's Form A follow-up letter dated December 30, 2014
-
Eighth Applicant Response dated January 8, 2015, to OCI's Form A follow-up letter dated December 30, 2014
Notice of Hearing
Hearing Documents
OCI Recommendation Memorandum
Final Decision