Dive Brief:
- Highmark Inc. closed its merger with Blue Cross of Northeastern Pennsylvania on Tuesday, after receiving state approval from the Pennsylvania Insurance Department. The combined companies will now operate as Highmark Blue Cross Blue Shield and will continue to provide health insurance and administrative services to consumers in northeastern Pennsylvania.
- The deal adds 550,000 covered individuals across 13 counties to Highmark's existent 4.7 million customers.
- For the immediate future, the company will keep members' benefits the same, but it ultimately plans to enhance its products and services.
Dive Insight:
Highmark is already a top-five Blues plan—and continuing to gain heft. The company operates in 62 of Pennsylvania's 67 counties, as well as across state lines in West Virginia and Delaware. According to Blackstone Advisory Partners, Highmark "has more than 34 million customers across product lines."
The company touts the merger as the natural progression of its business relationships and the best way to serve the needs of healthcare consumers in northeastern and north central Pennsylvania. It will continue to position itself as a Pennsylvania-based, not-for-profit health insurer.
With its combined resources, the company also plans make infrastructure investments necessary to improve efficiency and meet government requirements. Through the terms of the merger agreement, Highmark plans to maintain operations and "substantial staffing levels" in the area, as well as include former BCNEPA board members on a new local advisory board and on the Highmark board.