The board of directors of cash plan providers Manchester & Salford Hospital Saturday Fund and Healthcare Insurance Alliance have agreed to a merger of the two companies which will make it the second largest provider operating in the UK.
The newly created company will be called Healthcare Group Limited and will have a total membership of more than a quarter of a million people.
A series of extraordinary general meetings has been arranged to gain member approval for the merger to come into effect from September 1.
Healthcare Insurance Alliance is itself a result of the merger of The Northampton Hospitals Guild and Anglia Healthcare in 1997.
Because of the strong brands of the cash plan providers, Manchester & Salford Hospital Saturday Fund, The Hospitals Guild and Anglia Healthcare will remain as registered trading names.
Manchester & Salford showed its commitment to its members earlier this year when it increased the range of benefits on its Select Health Care plans, while maintaining its premiums at the same level.
It now gives members an extensive helpline service which offers debt, stress and bereavement counselling, in addition to advice on legal and domestic problems.
It also responded to customer demand by introducing a chiropody benefit of up to £200.