Skip to main content
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Current News
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Digital Health
    • Transformation
    • ESG
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Opinion
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Excellence in Governance
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top Innovators
    • Diversity in Healthcare
      • - Luminaries
      • - Top 25 Diversity Leaders
      • - Leaders to Watch
    • Women in Healthcare
      • - Luminaries
      • - Top 25 Women Leaders
      • - Women to Watch
    • Digital Health Transformation Summit
    • ESG: The Implementation Imperative Summit
    • Leadership Symposium
    • Social Determinants of Health Symposium
    • Women Leaders in Healthcare Conference
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Diversity Leaders Gala
    • Top 25 Women Leaders Gala
    • - Hospital of the Future
    • - Value Based Care
    • - Hospital at Home
    • - Workplace of the Future
    • - Digital Health
    • - Future of Staffing
    • - Hospital of the Future (Fall)
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Video Series - The Check Up
    • Sponsored Video Series - One on One
  • Data Center
    • Data Center Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • Newsletters
  • MORE+
    • Contact Us
    • Advertise
    • Media Kit
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Insurance
June 16, 2020 11:03 AM

Blues insurers Highmark and HealthNow propose affiliation

Shelby Livingston
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    AP

    Blue Cross and Blue Shield companies Highmark and HealthNow New York have agreed to form an affiliation that they say will lead to better services and lower costs for health plan members.

    Under the agreement, Pittsburgh-based Highmark, which serves members in Pennsylvania, Delaware and West Virginia, would acquire the Blue Cross and Blue Shield license that HealthNow maintains. Together, the companies would provide insurance to nearly 6 million members.

    Highmark entered similar agreements with Blues plans in Delaware in 2010 and in West Virginia in 1999.

    "The objectives driving this affiliation are focused on our shared desire for better health solutions for HealthNow members that can increase customer and clinician engagement, create better health outcomes, manage costs and improve affordability," David Holmberg, chairman of Highmark, said in the news release. "This affiliation will also enable HealthNow to take advantage of Highmark's resources, tools and advanced technologies."Operationally, the deal looks like a merger, except that no money will change hands between the two not-for-profits. While HealthNow plans would be branded as Highmark plans, executives from the two companies emphasized that HealthNow would maintain its local presence. It would keep its headquarters and regional office in New York and continue to be governed by its current board of directors.

    During a conference call with journalists on Tuesday, HealthNow CEO David Anderson explained that the affiliation, which has taken six to eight months to hammer out, is largely about attaining scale. Integrating with Highmark would allow HealthNow members access to advanced technology and innovative products. It will help the two insurers compete with large, national companies.

    While conversations around the agreement predated the COVID-19 crisis, the pandemic created significant risks to local health plans and reaffirmed why the combination was needed, Anderson said.

    "At the end of the day, a company's size matters, particularly in healthcare," he said. "This affiliation gives us more leverage across the healthcare spectrum."

    Highmark would also benefit from the affiliation through increased scale, efficiencies, access to talented workers and credibility with policymakers, according to Highmark President Deborah Rice-Johnson. She said the deal would add about 600,000 members to Highmark's insurance rolls, increasing its government business by a "couple hundred thousand" members. Highmark executives declined to provide an estimate of the amount of cost savings the combination would produce.

    When asked if the agreement would lead to job cuts, Holmberg said that Highmark's past affiliations resulted in the addition of more jobs. "Our objective is to figure out how do we bring more talent onto the team," he said.

    The affiliation requires approval from regulators in New York and Pennsylvania. The companies hope to gain approval by the end of the year.

    Highmark served 5.6 million members in 2019. Highmark Health, the parent company of Highmark, reported net income of $843 million on revenue of $18 billion in 2019. Highmark Health also includes Allegheny Health Network, an integrated delivery system.

    According to its website, HealthNow brings in $2.6 billion in annual revenue. Beyond the health plans, the affiliation agreement also includes HealthNow Administrative Services, which serves 100,000 customers. The agreement was unanimously approved by both health plans' boards of directors.

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    cybersecurity_i.jpg
    Massachusetts health insurer faces ransomware attack, member data at risk
    Medicaid website 2
    Insurance brokers banking on Medicaid redeterminations
    Most Popular
    1
    More healthcare organizations at risk of credit default, Moody's says
    2
    Centene fills out senior executive team with new president, COO
    3
    SCAN, CareOregon plan to merge into the HealthRight Group
    4
    Blue Cross Blue Shield of Michigan unveils big push that lets physicians take on risk, reap rewards
    5
    Bright Health weighs reverse stock split as delisting looms
    Sponsored Content
    Daily Finance Newsletter: Sign up to receive daily news and data that has a direct impact on the business and financing of healthcare.
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Digital Health
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • ESG
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Opinion
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Hospital at Home
        • - Workplace of the Future
        • - Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • Data Center
      • Data Center Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • Newsletters
    • MORE+
      • Contact Us
      • Advertise
      • Media Kit
      • Jobs
      • People on the Move
      • Reprints & Licensing