Highmark, Blue KC Affiliation Set to Close March 31
Highmark and Blue Cross and Blue Shield of Kansas City have secured the necessary regulatory approvals to move their affiliation plans forward.
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.”
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.