How Revenue is Spent at Priority Health (Michigan)
Priority Health (PH) is a tax-exempt, non-profit health insurer with a million members throughout Michigan. With three shareholders (Spectrum Health System (93.3%), Munson Healthcare (5.5%), and McLaren Northern Michigan (0.6%), PH reports having 17 voting members of the governing body, 12 of whom are indecent. The Form 990 (2018) lists 19 directors (two are part year), of which 12 (63%) are male and 7 (37%) are female.
reports having no employees although the organization is staffed with employees at Spectrum Health System who are leased back to PH. Compensation is allocated to PH via a management fee.
Whether you’re a member, prospective member, or just curious about how insurance premiums are spent, this post will tell you how PH spent the premiums (revenue) in 2018. However, it is important to understand that both the insurance benefit provider (PH) and the medical provider (Spectrum Health System) are run by the same people even though they are separate non-profits. PH is selling the insurance for an HMO or senior market and the care is provided by Spectrum Health System, so the costs are somewhat controlled because one entity is controlling both parts of the health service (the insurance and the benefit). Read more 
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