Blue Cross and Blue Shield of Montana has filed for regulatory approval for its proposed deal with Health Care Service Corp., which operates Blue Cross and Blue Shield plans in four other states.
The insurer said in a news release that it submitted paperwork to the Montana Commissioner of Securities and Insurance
as well as the Montana attorney general.
Under the transaction, the companies will contribute about $120 million to set up a charitable foundation focused on improving quality and access to healthcare programs in Montana.
Health Care Service Corp. will spend about $18 million to acquire some of the assets of Montana Blues and will assume certain liabilities. Montana Blues will contribute its remaining assets, valued at about $100 million.
Chicago-based Health Care Service Corp. operates Blues plans in Illinois, New Mexico, Oklahoma and Texas. It plans to retain all of the employees of Montana Blues, which will continue to operate under its not-for-profit status, the release said.
The companies announced their deal in September. At the time, a spokesman for Health Care Service Corp. said he expected a late spring or early summer deal closing