When Blue Cross and Blue Shield of Montana was founded more than 70 years ago, the population of our great state was about half what it is today. Small family farms were the backbone of the economy. Gasoline was cheap and there was no such thing as a personal computer or iPad. A lot has changed, but in 70-plus years, one constant has been the service that Blue Cross and Blue Shield has provided its customers. As the president and CEO of BCBS of Montana, I take great personal pride every day in our history, and in the people who work here, the service they provide to our customers and the doctors, hospitals and other health care providers with whom we work.
Now, it’s going to get better.
I had the great privilege on Sept. 17 of standing with Pat Hemingway Hall, the president and CEO of Health Care Service Corporation (HCSC), to announce our intention to join forces with Blue Cross and Blue Shield plans in four other states through an alliance with HCSC.
This is a significant, positive move forward for our company; one that we are very excited about. By combining with HCSC, we will continue our drive to reduce our administrative costs and do our part in controlling costs. Because of our size, every cost we have — from our chairs to our technology to the paper in our copiers — has to be borne by only approximately 270,000 customers.
We chose to join this alliance with HCSC for a number of reasons, but at the top of that list is the company’s culture and values. They operate in states similar to Montana, they are committed — as we are — to the not-for-profit model. And very importantly, they are committed to a strong local leadership and employee presence. That means we aren’t changing who we are. We aren’t changing our name. I will be fortunate enough to continue as plan president.
We recognize that people will have questions when we make an announcement like this. We know how important it is to our customers, to elected leaders and to the general public that they understand why we have proposed this alliance and what it means to all of us.
So while we are still finalizing a lot of the details of our alliance, we also want to take time to familiarize people with our decision, answer some of the questions we know people have, and give people the resources to get answers as we move forward.
So why this change? First, joining forces with other states helps us better control our customers’ costs. We are acutely aware that health care costs are the No. 1 priority for our customers and we strive to address that every day. The fact is, when it comes to controlling costs, scale matters. By becoming part of an organization with 13 million customers, we will gain access to HCSC’s scale, financial strength and innovative solutions. We gain access to a company that has invested billions of dollars in cutting-edge technology and member service improvements. We are confident that this alliance will help us be more competitive on price in Montana than if we continued on our own and better serve our current and prospective customers.
Second, Blue Cross and Blue Shield of Montana will remain just that — Blue Cross and Blue Shield of Montana. Our team of dedicated employees will stay focused on serving our customers. The strength of HCSC’s local operating philosophy is clear in the success of the four other plans it already oversees in Texas, Oklahoma, Illinois and New Mexico. Staying a local not-for-profit is crucial for me personally as a native Montanan and with 14 years at our wonderful company. We will not lose our name, our identity or our voice for all of you.
Over the coming weeks and months, we are committed to answering your questions. That is why HCSC and BCBS of Montana have set up a joint educational initiative, which we are calling Montanans for Healthcare Excellence, to serve as an information hub, so our customers and other Montanans have a source to go to when they have questions. The website,www.bigskyhealth.org, will be updated regularly with information as we move forward.
A lot of work lies ahead for us, and we will strive to keep everyone informed on our progress. We put our customers first, and we believe this alliance will continue to maintain the security and peace of mind for all of you for years to come.
Mike Frank is president and CEO of Blue Cross and Blue Shield of Montana.