Priority Health Expands Into Wisconsin

Priority Health will become the governing member of the  Group Health Cooperative of Eau Claire, a community-based health plan serving more than 61,000 members.  They appear to be aggressively following the financial derisking strategy of Michigan Blue Cross Blue Shield, which took over Blue Cross Blue Shield of Vermont two years ago:

https://www.priorityhealth.com/about-us/for-the-media/priority-health-expands-into-wisconsin-by-becoming-governing-member-of-group-health-cooperative-of-eau-claire

Priority Health becomes four-state health plan
July 24, 2025

Priority Health, a Michigan-based health plan serving more than 1.3 million members, and Group Health Cooperative of Eau Claire (the Cooperative), a community-based health plan in Wisconsin serving more than 61,000 members, have announced plans for Priority Health to become the governing member of the Cooperative.

“This agreement with Group Health Cooperative of Eau Claire marks a significant milestone in our mission to expand access to high-quality, affordable health care to those we are privileged to serve,” said Nick Gates, interim president of Priority Health. “By bringing together our strengths and capabilities, we are better positioned to improve health outcomes and provide an exceptional member experience. We look forward to serving the members of Group Health Cooperative of Eau Claire.”

Sarah North, CEO and general manager of Group Health Cooperative of Eau Claire, said: “Priority Health brings a track record of thoughtful leadership and a deep commitment to improving health outcomes — qualities that align well with our values. This agreement lays the groundwork for continued growth and innovation in today’s rapidly evolving health care landscape and positions us for long-term sustainability while allowing us to stay true to our purpose of improving health and offering community-based health plans in Wisconsin.”

Both organizations anticipate the transaction will close by the end of 2025 after required approvals are completed.

The agreement with the Cooperative will make Priority Health a four-state health plan. In December 2024, Priority Health became the sole member of Physicians Health Plan of Northern Indiana, which serves members in Indiana and Ohio.

Kaufman, Hall, and Associates, LLC is serving as exclusive strategic and financial advisor and Weld Riley is serving as legal counsel to Group Health Cooperative Eau Claire in this transaction. Taft Stettinius & Hollister is serving as external legal counsel to Priority Health and Ankura is serving as due diligence advisor.

About Priority Health:
Our members are at the heart of everything we do. With more than 30 years in business, Priority Health is the second-largest health plan in Michigan and the third-largest provider-sponsored health plan in the nation, offering an extensive portfolio of health benefits options for employer groups and individuals, including Medicare and Medicaid plans. Serving more than 1.3 million members each year in Michigan, Indiana and Ohio, Priority Health offers a broad network of primary care physicians. Priority Health continues to be recognized as a leader for quality, customer service, transparency and product innovation. Learn more about affordable, quality health coverage options from Priority Health. Visit the Priority Health newsroom for the latest news.

About Group Health Cooperative of Eau Claire:
Founded in 1972, Group Health Cooperative of Eau Claire is a nonprofit, member-focused health plan serving approximately 61,000 members across Wisconsin, including Medicaid and Medicare beneficiaries, commercial employer groups, and state employees. Visit Group Health Cooperative of Eau Claire to learn more.