UPDATED: March 17 at 4:30 p.m. ET
Highmark and Blue Cross and Blue Shield of Kansas City have secured the necessary regulatory approvals to move their affiliation plans forward, the insurers announced Tuesday.
The deal secured an O.K. from the Missouri Department of Insurance and is set to close on March 31, according to the announcement. Through the affiliation, Blue KC aims to improve outcomes and accelerate key innovations to support its members in the Kansas City region.
The affiliation was first announced in December. Once it closes, the two insurers expect that integration will "take place over a phased period of time." At present, nothing will change for members of either plan, according to the announcement.
Blue KC will maintain its leadership and will be locally-governed nonprofit company based on Kansas City as part of the affiliation, the companies said. Together, the plans will serve close to 8 million people, and it will propel Highmark to the third-largest Blues organization in the U.S.
“This approval underscores our commitment to employees, a community-focused culture, and a vision for making healthcare simpler, personalized and accessible,” said David Holmberg, Highmark Health CEO, in the press release. “This partnership will also provide new capabilities to support growth and product expansion in the Kansas City region.”
PUBLISHED: Dec. 11 at 2 p.m. ET
Highmark and Blue Cross and Blue Shield Kansas City have announced plans to affiliate.
The insurers revealed on Thursday that they will enter into an affiliation where Blue Cross KC will maintain its local brand and operations, but will be able to tap into Highmark's resources to accelerate innovation for its members. Highmark is the fifth-largest Blues plan in the U.S.
Through the affiliation, Blue Cross KC's financial reserves and earnings will remain within its organization, and Highmark will support its evolution through administrative capabilities, technology and new tools to enable the insurer to build new products and operational efficiencies.
Erin Stucky, CEO of Blue Cross KC, said in the announcement that after a "comprehensive" process to find a partner, the team is "confident" that Highmark was the right choice to "help us deliver greater value for our community."
“Blue KC’s affiliation with Highmark strengthens our legacy of building healthier Kansas City communities,” said Stucky. “We explored a number of opportunities to build on our commitments to the Kansas City region and be responsive to market needs.
The insurer said it tapped expert advisers to narrow down the affiliation partner that best met its needs, and Highmark was ultimately selected based on its proven track record of affiliation, shared non-profit status and mission-driven culture.
Highmark will bring its experience in provider engagement, population health, technology and data analytics to the table in the affiliation. The insurer includes 7.1 million health plan members and a network with 190,000 providers, including in rural regions.
The affiliation will bring Blue Cross KC's 1 million members into the fold, with membership at the combined entity topping 8 million. Blue Cross KC said the relationship is a key step toward its long-term growth goals.
“Highmark and Blue KC have both proudly served their communities and improved the health of generations of families,” said David Holmberg, CEO of Highmark Health. “Our affiliation is a natural fit because we share a strong commitment to employees, a community-focused culture and a vision for making healthcare simpler, personalized and accessible.”