The changes at the top include:
- Mark Bartlett, CFO and executive vice president, will also become enterprise CFO. He will continue to lead the Blues' merger and acquisition strategy and oversee its Medicaid joint venture business line with AmeriHealth Caritas for Blue Cross Complete, its Medicaid HMO.
- Ken Dallafior, executive vice president for commercial business, will also become president of Blue Cross' Core Health. This business line represents most of the Blues' enterprise revenue, including Blue Care Network and LifeSecure Insurance Co.
- Elizabeth Haar, CEO of the Accident Fund Group and senior vice president for subsidiary operations, will also become president of Emerging Markets. This business line is responsible for Blue Cross's Medicare Advantage program, which has been targeted for growth nationally.
Crain's confirmed with Blue Cross that it now handles Medicare Advantage claims for Arkansas Blue Cross Blue Shield. Talks are underway with several other Blues plans about similar arrangements or joint ventures, said Helen Stojic, Blue Cross' director of corporate affairs.
Loepp said a search is underway for a president and COO of the Accident Fund Group.
Tricia Keith, senior vice president and corporate secretary and services, has been promoted to executive vice president, chief of staff and corporate secretary. Keith, who was one of Crain's 40 under 40 winners in 2010, will continue to serve the Blue Cross corporate board as secretary, but will also assume responsibilities in the office of the president.
Two other Blues' executives — Julie Smith and Mary Smith who have been responsible for Medicare Advantage growth — will report to Haar.
Mary Smith has been promoted to senior vice president for quality and risk adjustment products and services.
Julie Smith has been promoted to senior vice president for senior health services.
In a statement, Blue Cross said the promotions are intended to improve the company's core business “while expanding into emerging markets to help continue to diversify the company's revenue sources beyond health insurance.”
In February, Crain's learned that the Michigan Blues was one of at least 10 Blues plans to meet last December and January with the executives of Philadelphia-based Independence Health Group Inc. about a possible merger or expanded joint business opportunities.
In his employee email, Loepp explained that Blue Cross plans to "partner with other health plans — particularly Blue plans in other states — to assist them with offering high-quality Medicare Advantage products and services in their regions of the country."
However, Andy Hetzel, Blue Cross' vice president of corporate communications, said Blue Cross isn't interesting in merging with another Blues' plan.
“We are constantly talking to other Blue plans about ways we can partner and work better together,” Hetzel said in a statement to Crain's last week. “Independence is a good example of a strong partner with our joint ownership of AmeriHealth Caritas.”
In 2011, Blue Cross Michigan paid $215 million for a minority interest in AmeriHealth Caritas, a 15-state Medicaid HMO, which it now co-owns with Independence Health. Blue Cross Complete is now a for-profit member of AmeriHealth Caritas.
Over the past two decades, some formerly independent state-chartered Blue Cross plans have merged into larger entities. Some, like the Anthem Group Inc., which operates 14 Blues plans, have converted to for-profit health insurers.
In 2014, Blue Cross Michigan converted into a nonprofit mutual health insurer after being the state's insurer of last resort for 34 years. But it requires permission of the state Legislature to sell or merge with another entity.