Blue Cross Blue Shield of Michigan is planning to bring on Blue Cross and Blue Shield of Vermont as a subsidiary.
The affiliation agreement between the two nonprofit organizations is intended to broaden expertise, operational and information technology resources, and the range of available health plan and service solutions to improve overall affordability and quality for members, according to a May 1 news release shared with Becker's.
Pending regulatory approval, Berlin-based BCBS Vermont would become a subsidiary of Detroit-based BCBS Michigan, but all governance, operational and policy decisions would still be made locally. BCBS Vermont would also retain its name, executive leadership and headquarters. Premiums from each plan would stay in their respective states and would be used to continue paying claims, administer plan operations, and maintain member reserves. Each organization would still operate financially as a single affiliate.
"Our two health plans share the values of nonprofit health care — focusing on the needs of our members, increasing affordability and access, and continuing our commitments to community-centered missions," Daniel Loepp, president and CEO of BCBS Michigan, said.
"Partnerships with other Blue Plans, especially with shared missions, is critical in the rapidly changing healthcare landscape," Don George, president and CEO of BCBS Vermont, said. "Together, sharing expertise and technology, we can bring better solutions to our members, customers, provider partners and communities."
BCBS Michigan serves more than 5.2 million members, while BCBS Vermont serves 240,000 members.