Blue Cross Blue Shield of Michigan and Blue Cross and Blue Shield of Vermont reached an agreement to formally affiliate and work together across both companies.
The affiliation will enable the organizations to broaden the range of health plans and service solutions that will further benefit members and customer groups, while remaining within and committed to local communities in both states. The agreement is pending the approval of state regulators.
“Our two health plans share the values of nonprofit health care – focusing on the needs of our members, increasing affordability and access, and continuing our commitments to community-centered missions,” says Daniel J. Loepp, president and CEO of Blue Cross Blue Shield of Michigan. “We are excited to join with Blue Cross and Blue Shield of Vermont in this affiliation, which will positively benefit our collective stakeholders.”
“Partnerships with other Blue Plans, especially with shared missions, is critical in the rapidly changing healthcare landscape,” says Don George, president and CEO of Blue Cross and Blue Shield of Vermont. “Together, sharing expertise and technology, we can bring better solutions to our members, customers, provider partners and communities.”
This affiliation will enable Blue Cross and Blue Shield of Vermont with additional expertise as well as operational and information technology resources. The intent is to improve overall affordability and quality while delivering a broader range of services that meet the evolving needs of members. It will preserve Blue Cross and Blue Shield of Vermont’s local identity while enabling both companies to fulfill their commitment to deliver high-value, convenient and accessible care in each state.
Under the affiliation, Blue Cross and Blue Shield of Vermont becomes part of the Blue Cross Blue Shield of Michigan enterprise family of companies. The agreement, approved by the respective plans’ boards of directors, maintains a Vermont organization with governance, operational, and policy decisions made locally.
Blue Cross and Blue Shield of Vermont will continue under the same name with the executive leadership team and workforce headquartered in Berlin, Vt., as they are currently. The majority of the re-configured, 12 member Vermont board of directors will be comprised of Blue Cross Vermont subscribers. There will be no changes to Blue Cross Blue Shield of Michigan’s existing headquarters, board of directors, or leadership team.
This is an affiliation, not an acquisition, which means there is no financial exchange between the organizations. As is the case today, premiums generated from each health plan will stay in the respective states and will wholly be used to pay claims, administer plan operations, and maintain member reserves. Each organization will continue to operate financially as a single state plan. Both organizations will be meeting with state officials and regulators to advance final approval and satisfy other closing conditions.
