“Affiliation” is a buzzword in insurer partnerships. It may seem ambiguous, but this is a standard term for nonprofit M&A-type activity.
A CareSource spokesperson told Becker’s that the nonprofit does not always use the term “acquisition,” instead calling an agreement an “affiliation” when the other party is also a nonprofit.
Here are some recent affiliation agreements playing out:
- Independent Health shared plans to join MVP Health Care. The organizations described the relationship as an “affiliation” in a news release. However, MVP Health Care CEO Chris Del Vecchio clarified that MVP will establish a holding company for the health plans, aligning with a member substitution agreement.
- Cambia Health Solutions is another example. Cambia positioned agreements with both Arkansas Blue Cross and Blue Shield and Blue Cross Blue Shield of North Dakota as “strategic affiliations.” According to a fact sheet that applies to both affiliations, Cambia and the BCBS licensees will remain as separate nonprofit entities. The health plans will still be locally led, but the organizations will have a common management and administrative framework.
- In 2023, BlueCross BlueShield of Vermont became a subsidiary of Blue Cross Blue Shield of Michigan. While similarly branding the move as an “affiliation,” a supporting document outlined how Vermont would maintain its local operations, as well.
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