Highmark’s Acquisition Strategy Continues

Highmark operates health insurance plans in Pennsylvania, Delaware, and West Virginia that serve approximately 4.5 million members and hundreds of thousands of additional individuals through the BlueCard® program.

Highmark’s diversified businesses serve group customer and individual needs across the United States through dental insurance and other related businesses. Highmark is among the top 10 largest health insurers in the United States and is the fourth-largest Blue Cross and Blue Shield-affiliated company.

Highmark and HealthNow New York announced an agreement to affiliate, with Highmark’s parent company, Highmark Health, becoming the primary licensee of the Blue Cross and Blue Shield Association for HealthNow’s 8-county Western New York and 13-county Northeastern New York service areas, pending regulatory approvals and satisfaction of other closing conditions.

The affiliation agreement unanimously approved by the respective health plans’ boards of directors contains provisions that are designed to preserve HealthNow’s strong historical presence in Western and Northeastern New York.

The acquisition by Highmark offers HealthNow the scale it needs to stay competitive, while retaining its separate identity as a local nonprofit Blues plan and continuing to serve its home communities. Highmark also offers HealthNow the resources to make  needed investments in technology, products and services.

The acquisition also includes HealthNow Administrative Services, which provides third-party administrative services for 100,000 self-funded employers, with offices in the Philadelphia suburb of Blue Bell, Pa., and in Sacramento, Calif.

Takeaway: Together, Highmark and HealthNow provide health insurance plans that serve nearly six million members