Amid financial challenges, Point32Health hires a new chief executive
Gilligan said his appointment at Point32Health, which serves nearly 2 million members, comes at a 'pivotal time in the health care industry.'
'As we enter this important next chapter for our organization, we will position Point32Health to perform at its full potential and to drive growth,' he said in a statement.
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Point32Health, which was formed in 2021 by the merger of Tufts and Harvard Pilgrim, has suffered serious financial setbacks in recent years.
Point32Health struggled last year. For the first six months of 2024, the insurer reported an operating loss of $155 million on $4.7 billion in revenue, according to an Aug. 15 news release.
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Like other health insurers, it has faced skyrocketing costs for prescription drugs, including medications that fight obesity. Last month, following the lead of Blue Cross Blue Shield, Point32Health said it was significantly scaling back its coverage of costly
Starting Jan. 1, Point32Health will dramatically change how and when it pays for Zepbound — the insurer's
Similar to Blue Cross Blue Shield, Point32Health will give large employers the option of paying extra to continue covering the weight-loss drug for its workers.
But for patients who are insured by a smaller employer or who purchase their plans through the state's marketplace, Point32Health is ending coverage of the popular but pricey drug for weight loss
altogether.
The change comes as
Eileen Auen, executive chair of Point32Health's board of directors, had served as interim head of the insurer since Hayes's departure. A selection committee of the board oversaw the recruitment of a new chief executive and retained a national executive search firm to assist in the process.
Gilligan is a native of New England and graduate of the College of the Holy Cross, according to Point32Health.
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