Blue Cross Blue Shield of Michigan has finalized its deal to acquire Blue Cross and Blue Shield of Vermont, the companies announced Wednesday.
The insurers will maintain separate headquarters, boards of directors and workforces and will continue to be led by the same executives under the non-cash deal. The combined entity will have 5.4 million members.
Related: Elevance, Blue Cross Louisiana halt $2.5B proposed deal
Nonprofit health insurance companies continue searching for ways to strengthen themselves against large for-profit rivals such as UnitedHealth Group, CVS Health and Humana. SCAN Group and CareOregon, also nonprofits, are awaiting regulatory approval to merge and create a $6.8 billion company, for example.
“This affiliation enables us, as a Vermont-based health plan, to continue serving the needs of Vermonters in the decades to come. Sharing expertise and technology with Blue Cross Blue Shield of Michigan, we will improve solutions for our members, customers, provider partners and communities here in Vermont,” Blue Cross and Blue Shield of Vermont President and CEO Don George said in a news release.
The deal requires that Blue Cross and Blue Shield of Vermont benefits, coverage decisions and provider network are managed locally. There can also be no material provider network changes, according to the companies
The Michigan and Vermont Blue Cross companies each holds a majority share of commercial insurance enrollment in their respective states, according to data compiled by the American Medical Association.