CareSource

CareSource is a nonprofit health insurance provider headquartered in Dayton, Ohio. The organization began in 1989 as the Dayton Area Health Plan, a managed-care initiative created to expand access to medical services for low-income residents of the Dayton region. It was established with a grant from the state of Ohio and initially operated under a regulatory structure that allowed it to serve Medicaid members through mandatory enrollment. Pamela Morris was the organization’s founding chief executive and remained its principal leader until 2018. The plan’s early development was shaped by the expansion of Medicaid managed care in Ohio. It had to obtain an HMO license, secure a federal waiver, and overcome regulatory and legislative obstacles before beginning operations. In the mid-1990s, the organization expanded beyond Dayton. It entered the Columbus market through the acquisition of a Medicaid plan administered by UnitedHealthcare and later acquired Butler Health Plan, adding members in Butler County. Although the regional plans initially retained separate names, the organization unified them under the CareSource name in 2000. CareSource subsequently broadened both its geographic reach and its product portfolio. Its core business remained Medicaid managed care, but the organization added Medicare-related offerings, Marketplace plans created in the wake of the Affordable Care Act, and products serving people eligible for both Medicaid and Medicare. Partnerships with other health-care organizations, including Humana, supported expansion into dual-eligible programs and Kentucky Medicaid. CareSource also entered or expanded in Indiana, Georgia, and West Virginia through Medicaid and health-exchange opportunities. The organization’s positioning combines nonprofit ownership with a focus on publicly funded and underserved populations. Rather than operating primarily as a broad commercial insurer, CareSource has historically concentrated on government-sponsored programs and on services intended to address barriers beyond clinical care. Its CareSource Life Services initiative, launched in the Dayton area in the mid-2010s, connected members with employment, housing, and economic-support resources. The CareSource Foundation, established in 2006, provides grants and other support to nonprofit organizations working with underserved communities. Dayton has remained central to CareSource’s identity and operations. The company opened a large downtown headquarters during a period when several major employers were leaving the region, and later announced an additional downtown facility named the Pamela Morris Center. Its local presence, employment base, and nonprofit programs have made it an important institution in the Dayton economy and civic community. CareSource is not publicly traded and does not have a stock ticker. It currently operates as a multi-state nonprofit health plan serving members through Medicaid, Medicare, Marketplace, and related public health programs. In January 2025, it acquired Common Ground Healthcare Cooperative, an Affordable Care Act-era health insurance cooperative. The acquisition further extended CareSource’s activity in the individual and family health-insurance market. The organization’s principal identity remains that of a mission-driven managed-care provider serving Medicaid members and other populations that may face difficulty obtaining affordable coverage.

CareSource was created in Dayton, Ohio, in 1989 as the Dayton Area Health Plan. Its formation responded to concerns about access to health services for low-income Ohio residents and was supported by a state grant. Pamela Morris became the organization’s first chief executive. Before the plan could operate, its organizers had to obtain an HMO license, raise operating funds, and secure a federal waiver allowing a mandatory-enrollment Medicaid managed-care model. The plan became one of Ohio’s early examples of mandatory Medicaid managed care. The organization faced a significant legal and regulatory challenge when its federal waiver was scheduled to expire in the early 1990s. Congressional intervention helped preserve the plan’s ability to continue operating. During the middle of the decade, the Dayton Area Health Plan expanded into Columbus by acquiring a Medicaid plan that had been administered by UnitedHealthcare. That operation retained the MedPlan name for a period. In 1997, the organization acquired Butler Health Plan and added approximately 6,000 members in Butler County. The various regional identities were eventually consolidated under the CareSource name in 2000. Following the rebrand, CareSource grew rapidly as Ohio expanded Medicaid managed care. It became the only Medicaid managed-care provider operating in all 88 Ohio counties in 2007. The organization also reinforced its Dayton base by developing a new downtown headquarters, completed in 2009. The headquarters project was intended both to accommodate growth and to demonstrate the organization’s long-term commitment to its founding city. CareSource’s business expanded beyond traditional Medicaid. In the period following enactment of the Affordable Care Act, it developed Marketplace products and entered the commercial individual health-insurance market. It also created or participated in plans for people eligible for both Medicare and Medicaid. A partnership with Humana supported dual-eligible services in Ohio and later produced the Humana-CareSource Medicaid plan in Kentucky. CareSource subsequently pursued Medicaid and exchange opportunities in Indiana, Georgia, and West Virginia. The organization’s strategy increasingly incorporated social determinants of health. In 2006, it established the CareSource Foundation to support nonprofits serving disadvantaged populations. In 2014 and 2015, CareSource Life Services broadened the member-support model by connecting members with employment opportunities and assistance related to housing and financial security. One early employment effort involved arranging interviews for members with Fuyao Glass America. The program reflected CareSource’s view that employment, housing, and economic conditions can influence health outcomes. CareSource continued to invest in Dayton facilities as its workforce and membership expanded. In 2016, it announced plans for a new downtown building, later named the Pamela Morris Center in recognition of the founder. Morris retired as president and chief executive in April 2018, and Erhardt Preitauer became chief executive in May of that year. Preitauer’s tenure continued the organization’s multi-state growth and focus on government-sponsored coverage. The CareSource Foundation marked its fifteenth anniversary in 2021, by which point it had supported hundreds of nonprofit organizations in Ohio. CareSource also committed capital to affordable-housing initiatives connected with its social-determinants-of-health work. In January 2025, the company acquired Common Ground Healthcare Cooperative, adding an Affordable Care Act-created cooperative to its broader health-insurance platform. CareSource remains a private nonprofit health plan headquartered in Dayton and focused on Medicaid, Medicare, Marketplace, and related public programs.

1. 2025Common Ground Healthcare Cooperative acquisition

   CareSource acquires Common Ground Healthcare Cooperative, extending its activity in Affordable Care Act-related individual coverage.

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2. 2018Leadership transition

   Founder and longtime chief executive Pamela Morris retires, and Erhardt Preitauer becomes CEO.

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3. 2016Expansion into West Virginia, Indiana, and Georgia

   CareSource begins serving West Virginia exchange members and receives opportunities to serve Medicaid populations in Indiana and Georgia.

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4. 2015CareSource Life Services expands

   The organization develops member services addressing employment, housing, and economic stability in addition to medical care.

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5. 2014MyCare Ohio and Marketplace expansion

   CareSource participates in integrated Medicare-Medicaid coverage through MyCare Ohio and announces further Marketplace expansion.

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6. 2012Humana partnership expands Medicaid and dual-eligible services

   CareSource partners with Humana on services for people eligible for both Medicare and Medicaid and enters Kentucky Medicaid.

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7. 2009Downtown Dayton headquarters is completed

   CareSource completes a large new headquarters in downtown Dayton, reinforcing its local corporate presence.

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8. 2007Coverage reaches all Ohio counties

   CareSource becomes the only Ohio Medicaid managed-care provider operating in all 88 counties.

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9. 2006CareSource Foundation is established

   CareSource creates a foundation to support nonprofit organizations serving underserved populations.

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10. 2000CareSource brand is introduced

    The organization consolidates its regional plans under the CareSource name.

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11. 1997Butler Health Plan acquisition

    The organization acquires Butler Health Plan and expands its membership in Butler County.

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12. 1996Expansion into Columbus

    The Dayton Area Health Plan enters the Columbus market by acquiring a Medicaid plan administered by UnitedHealthcare.

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13. 1993Federal waiver requires legislative support

    The organization’s initial federal waiver approaches expiration, and congressional action helps preserve the plan’s operating model.

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14. 1989Dayton Area Health Plan is founded

    Pamela Morris and regional health-care leaders establish the Dayton Area Health Plan in Dayton, Ohio, to serve low-income residents through Medicaid managed care.

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A nonprofit, mission-oriented health plan focused on affordable coverage, government-sponsored programs, Medicaid populations, and support for underserved communities.

• CareSource MedicaidMedicaid managed care1989

  CareSource’s foundational offering is managed Medicaid coverage for eligible low-income individuals and families. The plans coordinate medical services through provider networks and are administered under state Medicaid contracts. Medicaid remains central to the organization’s identity and historical growth, particularly in Ohio, where CareSource began and developed a broad statewide presence.

• CareSource MarketplaceIndividual and family health insurance2014

  Marketplace plans serve individuals and families purchasing coverage through Affordable Care Act exchanges. The product line represented CareSource’s move beyond Medicaid into subsidized and commercial individual insurance. Coverage typically combines medical benefits with a provider network and member-support services, subject to the rules and offerings of each state marketplace.

• CareSource MedicareMedicare health plans2014

  CareSource’s Medicare business serves older adults and other Medicare-eligible members through Medicare-related health plans. The organization also developed integrated approaches for members who qualify for both Medicare and Medicaid, linking the two public programs through coordinated care arrangements.

• CareSource Life ServicesMember support services2014

  CareSource Life Services is a social-support initiative designed to address nonmedical conditions that affect health. Its work has included employment connections, housing assistance, and economic-stability support. The initiative reflects CareSource’s effort to supplement insurance coverage with practical help for circumstances that can prevent members from achieving better health outcomes.

• 2020Affordable housing investment

  United States

  CareSource announced an investment commitment supporting affordable housing as part of its efforts to address social determinants of health.

  Outcome. The initiative positioned housing stability as a component of member health and community well-being.

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• 2014CareSource Life Services

  Ohio

  CareSource launched a member-support program that connected Medicaid members with employment opportunities and later expanded into housing and economic-stability assistance.

  Outcome. The program broadened CareSource’s approach from medical coverage toward social determinants of health.

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• 2006CareSource Foundation community grants

  Ohio

  CareSource established a philanthropic foundation to support nonprofit organizations working with underserved communities and to strengthen local health and social-service networks.

  Outcome. The foundation became a continuing part of CareSource’s community-engagement strategy and supported hundreds of nonprofit organizations.

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• 2025Acquire Common Ground Healthcare CooperativeM&A

  Common Ground Healthcare Cooperative was created under an Affordable Care Act program supporting health-insurance cooperatives.

  What changed. CareSource acquired the cooperative in January 2025.

  Aftermath. The transaction expanded CareSource’s participation in the individual and family health-insurance market.

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• 2014Enter Affordable Care Act Marketplace insuranceProduct launch

  Health-care reform and the creation of insurance marketplaces opened a route for CareSource to serve individual members outside Medicaid.

  What changed. CareSource developed Marketplace products and announced expansion into additional state exchanges.

  Aftermath. The organization diversified its product mix while retaining a strong focus on publicly supported coverage.

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• 2012Partner with Humana on dual-eligible and Kentucky Medicaid coverageStrategy

  CareSource sought to serve members eligible for both Medicare and Medicaid and to expand beyond Ohio.

  What changed. CareSource partnered with Humana on dual-eligible services in Ohio and entered Kentucky Medicaid through the Humana-CareSource plan.

  Aftermath. The partnership extended CareSource’s geographic reach and added experience coordinating public-program benefits.

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• 2000Unify regional plans under the CareSource brandStrategy

  The Dayton Area Health Plan operated multiple regional plans under separate names after expanding across Ohio.

  What changed. The organization consolidated those plans under the single CareSource identity.

  Aftermath. The unified brand supported a statewide and later multi-state operating model.

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• 2025CareSource acquires Common Ground Healthcare Cooperative

  CareSource acquired Common Ground Healthcare Cooperative, an Affordable Care Act-era health insurance cooperative, expanding its presence in individual and family health coverage.

  M&A
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• 2018CareSource names Erhardt Preitauer chief executive

  After Pamela Morris retired, CareSource appointed Erhardt Preitauer, previously associated with Horizon NJ Health, as chief executive.

  Leadership change
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• 2015CareSource launches expanded member-support approach through CareSource Life Services

  The organization developed a program addressing employment, housing, and economic stability alongside members’ medical needs.

  Campaign
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• 2012CareSource expands into Kentucky Medicaid through Humana partnership

  CareSource and Humana entered Kentucky Medicaid with a jointly branded plan known as Humana-CareSource.

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1. CareSource
2. CareSource official website