This just came out this morning from the Pittsburgh Tribune:
Currently, there are 4 Blue Cross Blue Shield affiliates in Pennsylvania. Assuming the closing of this recently announced merger, there will be 3. Blue Cross of Northeastern PA (BCNEPA) has about 500,000 insurance subscribers and about $750 million in annual revenue. Their stated surplus is $258 million at the end of 2012.
As a part of the merger, Highmark and BCNEPA will donate $100 million to a charity to promote the health and economic development in BCNEPA’s subscriber area.
In the past, Highmark and BCNEPA had collaborated on some products, including Medicare advantage. BCNEPA’s desire to merge had more to do with their need to achieve economies of scale to effectively compete in light of the Affordable Care Act.
The primary remaining competitor in Northeastern PA is Geisinger Health Plan.
The merged companies will have approximately 5 million members, revenues of $16 Billion, and will cover 62 of the 67 counties in Pennsylvania. The remaining Blue Cross affiliates in PA are Independence Blue Cross and Capital Blue Cross.
More details on the story can be found on the Insurance News Net website.
Here is the story from the Pittsburgh Tribune-Review. Highmark is the largest health insurer in Pennsylvania and an affiliate of the BlueCross and BlueShield Association. The closing of the deal with Jefferson, valued at $350 million, gives Highmark an anchor hospital in the South Hills of Pittsburgh. Highmark is also trying to finalize an approximately $1.1 billion acquisition of the West Penn Allegheny health system. The West Penn deal is pending regulatory approval of the PA State DOI.
This goes into the “stranger than fiction” file. Highmark is one of the largest health insurers in Pennsylvania. The CEO of Highmark was fired by the board in an emergency meeting when a police report was released which alleged that the CEO was arrested for trespassing onto the property of his mistress (and her husband) and assaulting the husband of his mistress after an altercation.
At this point, I don’t believe Highmark has announced a permanent replacement. According to the Wall Street Journal, the company is being led by J. Robert Baum until a permanent replacement is selected.
Highmark is selling off their Medicare claims processing business in order to clear a regulatory path regarding their acquisition of West Penn Allegheny. It appears that Highmark is more interested in vertical expansion within the health care space than growing horizontally with ancillary Medicare service businesses. A Highmark EVP is quoted as saying that they plan to expand more into the medical provider business.
The story is from the Pittsburgh Tribune-Review. Highmark is looking for injunctive relief to block University of Pittsburgh Medical Centers (UPMC) from airing ads which talk about the termination of portions of their contract with Highmark in June of 2012.
UPMC is considered a very important medical provider in the Pittsburgh market.
We have published the Highmark 2010 Medicare Advantage Plan Designs in the “Agent Use Only” portion of our website for Insurance Agents to study for 2010 Highmark Product Certification.
Insurance Agents looking for 2010 Plan Designs can visit our Resource Center. To access the plans use the following: