Melody Health Insurance plans to acquire Colorado Choice Health Plans

DENVER — Melody Health Insurance Inc. in Denver plans to acquire Colorado Choice Health Plans, a 45-year-old nonprofit based in Alamosa that has 2,500 customers in Larimer and Weld counties.

The deal is pending regulatory approval from the Colorado Division of Insurance and the Colorado Attorney General.

Colorado Choice will become a wholly owned for-profit subsidiary of Melody Health Insurance.

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Terms of the deal were not disclosed, but Melody Health will provide capital for Colorado Choice to serve its membership while expanding into new markets.

“Colorado Choice has defied tremendous odds, growing successfully in a very challenging market, one where competitors have dropped out,” Sal Gentile, chief executive of Melody Health Insurance, said in a prepared statement. “We see this as a great opportunity to build on what they’ve done and expand into new markets.”

Colorado Choice will continue to sell health-insurance plans during the upcoming 2017 open-enrollment period and beyond and will continue to serve its members from its Alamosa headquarters. All management and employees will maintain their positions, and staff will be added to support growth. Cynthia Palmer, CEO of Colorado Choice, will join Melody’s board of directors.

Backed by private investors, the Melody team will use the Colorado Choice operation to enter new markets, with Colorado Choice running the Colorado business.

“Colorado Choice has been proud to serve our members since 1972 in many Colorado counties where residents don’t have a lot of health coverage options,” Palmer said. “As we enter our 45th year of serving Colorado, joining with Melody is a great opportunity to continue our mission locally and in new service areas.”