Last Updated: October 29, 2014
Information on the Proposed Acquisition of Control of Network Health Plan (NHP) and Network Health Insurance Corporation (NHIC) (Collectively, the Wisconsin Domestic Insurers) by Froedtert Health, Inc. (Applicant)
On September 3, 2014, Froedtert Health, Inc. (Applicant) filed a plan to acquire control of the above-referenced domestic insurers, pursuant to the terms and conditions set forth in a Member Admission Agreement (Agreement) dated September 30, 2014, by and between the Applicant, Ministry Health Care, Inc. (MHC) and Ministry Holdings, Inc. (MHI).
NHP is a Wisconsin for-profit health maintenance organization that offers comprehensive HMOplans to individuals and groups. NHIC is a Wisconsin non-profit/non-stock health insurer that offers indemnity-type point-of-service (POS) health plans and Medicare Advantage preferred provider organization (PPO) health plans. Both entities operate in the Fox Valley region of Wisconsin and are wholly owned/controlled subsidiaries of MHI, a Wisconsin holding corporation. MHI, in turn, is a wholly owned subsidiary of MHC, a Catholic-sponsored parent corporation to tax exempt health care providers located in Wisconsin and Minnesota.
The Applicant, located in Milwaukee, Wisconsin, is a Wisconsin non-stock corporation and is the parent organization for a non-profit regional health system. The Applicant intends to become a 50% corporate member of MHI, in accordance with the terms and conditions of the aforementioned Agreement, subject to all required regulatory approvals, including the approval of this Form A by the Commissioner of Insurance for the State of Wisconsin (the Commissioner). [Since MHI owns 100% of NHP's outstanding stock, and is the sole corporate member of NHIC, the proposed transaction would result in indirect (50%) control of the Wisconsin domestic insurers.]
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 http://www.naic.org/cis/.
Form A Application Filed on September 3, 2014
Notice of Hearing
OCI Recommendation Memorandum