Carle ceases business lines with Health Alliance

“We are so grateful for the commitment of all the health plan employees who will continue to serve customers as we navigate this transition. They have consistently brought innovative solutions, unique programming and unmatched customer service to improve the health outcomes of those we serve for decades, and that impact is felt by members across the country.” Sinead Madigan, Health Alliance President said.

By Craig Ondevilla February 25, 2025 5:45 pm

Chambana TodayCanvaPro“We are so grateful for the commitment of all the health plan employees who will continue to serve customers as we navigate this transition. They have consistently brought innovative solutions, unique programming and unmatched customer service to improve the health outcomes of those we serve for decades, and that impact is felt by members across the country.” Sinead Madigan, Health Alliance President said.

CHAMPAIGN, IL (Chambana Today) – Carle Health announced significant changes to its operations beginning January 1, 2026.

Starting on January 1, subsidiaries Health Alliance and FirstCarolinaCare will cease all business lines except Medicare Advantage. This is due to challenges in maintaining operations and financial efficiency in the health insurance sector marked by medical inflation, rising prescription drug costs, increased utilization of healthcare services, and higher chronic medical conditions. Health alliance was integral to Carle Health’s mission since 1989, and FirstCarolinaCare joined in 2020.

The rapidly evolving health insurance industry put financial strain on insurers making it difficult for both of them to compete. Despite efforts to scale, Health Alliance and FirstCarolinaCare both struggled to meet the demands of the environment.

“Our commitment to the communities we serve requires a constant evaluation of the organization so we can continue to set the standard of excellence in healthcare,” James C. Leonard, MD, Carle Health President and Chief Executive Officer said. “Carle Health has had to make decisions that enable us to better focus on our core services, built around the health and wellbeing of patients. We recognize that in today’s health insurance environment, our health plans no longer successfully compete and Carle Health must effectively utilize our resources to meet the changing needs of customers.”

The organization is preparing its changes with employees and partners in the coming months. Membership information will continue to be accessible through the Hally/MyChart platform beyond the end of the year.