Blue Cross Blue Shield of Montana, the state’s dominant private health insurer, announced Monday it will be bought by the fourth largest health insurance company in the nation — yet still remain as a nonprofit firm with a state focus.
Blue Cross said it will become part of Health Care Service Corp., a coalition of Blue Cross/Blue Shield plans in Texas, Illinois, Oklahoma and New Mexico. The company, headquartered in Chicago, has more than 13 million customers.
Montana’s Blue Cross plan is the largest private health insurer in the state, with about 270,000 “members” or customers.
Mike Frank, president and CEO of Blue Cross Blue Shield of Montana, said becoming part of HCSC will bring with it the benefits of a large-scale firm, such as having access to “cutting-edge” technology and more financial resources.
“We think there could be tens of millions of dollars that we might need to spend on technology,” he said “(HCSC) has a state-of-the-art claims processing system; they’ve put $2.4 billion into technology in the last decade. …
“With just $128 million of reserves (for Blue Cross of Montana), it makes it very difficult for us to come up with that kind of money.”
For example, HCSC already is developing and using mobile applications, whereby customers or providers use their smartphones, tablet computers or other mobile devices to interact with the insurer, Frank said.
Frank said joining the two companies will not cost any jobs in Montana, where Blue Cross employs about 520 people. Blue Cross employees here will become employees of HCSC, but the Montana company will keep its name, he said.
Frank also said he doesn’t anticipate any immediate changes for Blue Cross customers.
The transaction, not yet complete, must be reviewed by the Montana attorney general and the state auditor’s office, which regulates insurance.
Lucas Hamilton, spokesman for state Auditor Monica Lindeen, said Monday neither company had filed any formal proposals with her office, so it was difficult to say what approvals would be needed.
Frank declined to say how much HCSC is paying for Blue Cross, and that those details had yet to be made final.
Blue Cross and HCSC officials, including HCSC President and CEO Patricia Hemingway Hall, also met Monday afternoon with Gov. Brian Schweitzer, who queried them about the companies’ plans and their effect on Montana consumers.
via Blue Cross Blue Shield of Montana to be bought by nation’s fourth-largest health insurer.