BCBS Kansas City and Highmark earned regulatory approval from the Missouri Department of Commerce and Insurance to close their affiliation deal, according to a March 17 news release.
Their affiliation will close March 31. However, the companies said integration will take place over time.
BCBS Kansas City and Highmark shared plans to affiliate in a Dec. 11 news release. In a December interview with Becker’s, the organizations’ leaders could not share how the the move would specifically affect pricing and administrative costs, but they said they hope to improve affordability.
The affiliation also coincides with BCBS Kansas City’s leadership transition. Jenny Housley, who served as the insurer’s senior vice president and chief revenue officer, was named president in October. She succeeds CEO and former President Erin Stucky, who shared plans to retire by the end of 2026.
BCBS Kansas City will retain its local leadership and headquarters in Kansas City, along with its brand (also known as Blue KC). Financial reserves and earnings will also remain at BCBS Kansas City. Highmark will offer administrative support, leveraging its knowledge of provider engagement, population health, technology and data analytics.
“We explored a number of opportunities to build on our commitments to the Kansas City region and be responsive to market needs,” BCBS Kansas City CEO Erin Stucky said. “Our evaluation process was comprehensive, and we are confident Highmark is the right partner to help us deliver greater value for our community.”
The move is the latest in a wave of affiliations among BCBS plans. Highmark affiliated with HealthNow New York in 2021. Now, Highmark is set to become the third largest Blue Cross Blue Shield-affiliated organization in the nation.
The March news release said the plans will collectively serve nearly 8 million members. As of December, Highmark had 7.1 million core health plan members and more than 3,600 health plan employees. BCBS Kansas City had 1 million members and nearly 1,200 employees.
This story was last updated March 18.
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