Two nonprofit Blue Plans move toward greater partnership to deliver enhanced value through faster health plan and technology innovation
Vermont Business Magazine Expanding on their successful, recent history of partnership, Blue Cross and Blue Shield of Vermont and Blue Cross Blue Shield of Michigan today announced an agreement to formally affiliate and work together across both companies. The affiliation will enable the organizations to broaden the range of health plan and service solutions that will further benefit members and customer groups, while remaining within and committed to local communities in both states. The agreement is pending approval of state regulators.
“Partnerships with other Blue Plans, especially with shared missions, is critical in the rapidly changing healthcare landscape,” said Don George, President and CEO of Blue Cross and Blue Shield of Vermont. “Together, sharing expertise and technology, we can bring better solutions to our members, customers, provider partners and communities.”
“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,” said Daniel J. Loepp, president and CEO of Blue Cross Blue Shield of Michigan. “We are excited to join with Blue Cross and Blue Shield of Vermont in this affiliation, which will positively benefit our collective stakeholders.”
In their joint statement, they said this affiliation will enable Blue Cross and Blue Shield of Vermont with additional expertise as well as operational and information technology resources. The intent is to improve overall affordability and quality while delivering a broader range of services that meet the evolving needs of members. It will preserve Blue Cross and Blue Shield of Vermont’s local identity while enabling both companies to fulfill their commitment to deliver high-value, convenient and accessible care in each state.
Under the affiliation, Blue Cross and Blue Shield of Vermont becomes part of the Blue Cross Blue Shield of Michigan enterprise family of companies.
The agreement, approved by the respective plans’ boards of directors, maintains a Vermont organization with governance, operational, and policy decisions made locally. Blue Cross and Blue Shield of Vermont will continue under the same name with the executive leadership team and workforce headquartered in Berlin, VT, as they are today. The majority of the re-configured, 12 member Vermont board of directors will be comprised of Blue Cross VT subscribers.
There will be no changes to Blue Cross Blue Shield of Michigan’s existing headquarters, board of directors or leadership team. This is an affiliation, not an acquisition, which means there is no financial exchange between the organizations.
As is the case today, premiums generated from each health plan will stay in the respective states and will wholly be used to pay claims, administer plan operations, and maintain member reserves.
Each organization will continue to operate financially as a single state plan. Both organizations will be meeting with state officials and regulators to advance final approval and satisfy other closing conditions.
Blue Cross Blue Shield of Michigan has long demonstrated industry leadership in developing new capabilities and innovative products that directly benefit customers and members. BCBSM is already partnering successfully with other Blue Cross and Blue Shield licensed companies on a number of initiatives spanning technology, health plan offerings, and innovation.
The affiliation will ensure Blue Cross and Blue Shield of Vermont continues its strong, local presence, committed to the health and vitality of Vermonters.
BCBS Vermont subsequently issued this statement on Thursday:
For more than 40 years, our nonprofit health plan has had a simple, powerful mission: make health care work better for all Vermonters. To fulfill that mission far into the future and better respond to rapid changes in health care, we plan to affiliate with Blue Cross Blue Shield of Michigan to best meet the needs of Vermonters.
Affiliating with a fellow nonprofit Blue Cross plan will allow us to share resources and expertise, reduce the cost of future investments in technology and operations, and provide innovative benefit programs and enhanced services.
Blue Cross Blue Shield of Michigan is an industry leader in developing new technology and innovative products that directly benefit members. Our organizations have a history of successful collaboration. We share a claims processing system to streamline administration and partnered to launch Vermont Blue Advantage for Medicare beneficiaries.
While this affiliation has many clear benefits, there are very important things that won’t change:
- We will remain a local, financially independent organization, keeping our name and Berlin headquarters.
- Our local leaders and more than 400 employees will continue serving our neighbors.
- Members and customers will experience the same excellent health coverage, and our local relationships and extensive network of providers will remain in place.
- All premiums, financial reserves, and health care decisions will remain in Vermont.
- The grants and investments we make to support local organizations, charities, and our state’s public health initiatives will continue to be as strong as ever.
Looking forward, this affiliation creates a clear path to serve Vermonters with greater strength, stability, and innovation. We invite you to visit www.BlueCrossVT.org/Together for more details.
Statement from Vermont Association of Hospitals and Health Systems (VAHHS) President and CEO, Mike Del Trecco, on the news that Blue Cross and Blue Shield of Vermont plans to merge and relinquish its license to Blue Cross and Blue Shield of Michigan
“VAHHS represents all of Vermont’s locally led non-profit hospitals. We are watching closely the news of a merger of our state’s largest health insurer, Blue Shield of Vermont, with a much larger insurer, Blue Cross and Blue Shield of Michigan. Our expectation is that decisions about care management, prior authorizations and operational decisions that impact Vermonters’ health care will remain entirely local and driven by our shared commitment to access to local high-quality and affordable care.
“There has never been more at stake in health care. We are a rural and aging corner of the country. In order to stabilize and thrive, we must have a robust and local health care system that is able to respond to patient needs, understand and engage in our complex and unique regulatory structure and be invested in our health care reform efforts.”
Statement from Sunny Eappen, MD, MBA, President and CEO of The UVM Health Network, on Today’s Blue Cross and Blue Shield of VT Announcement
“The challenges of preserving patient access to health care in rural America have never been greater. Hundreds of hospitals and health systems have closed in recent years, and the local organizations who remain in rural areas are struggling in the face of inflation, workforce shortages and supply chain disruptions. As a local non-profit organization, the UVM Health Network is accountable to the communities we serve. We are focused on regaining financial stability so we can continue to provide the critical services our region depends on, while innovating to improve the health of our population. It is vital that we partner in this work with BCBSVT to serve our patients, many of whom are their members. We look forward to continuing our positive relationship with BCBSVT, and are hopeful that non-profit values and ties to Vermont will continue to guide their work.”
About Blue Cross and Blue Shield of Vermont:
For more than 40 years, Blue Cross and Blue Shield of Vermont has been enhancing the health and well-being of Vermonters by offering innovative plan options to individuals, older Vermonters, and businesses. Employees are dedicated to developing new ways to support high-quality care, programs, and events that promote wellness. Blue Cross and Blue Shield of Vermont is an independent licensee of the Blue Cross and Blue Shield Association. For more information, visit www.bluecrossvt.org.
About Blue Cross Blue Shield of Michigan:
Blue Cross Blue Shield of Michigan, a nonprofit mutual insurance company, provides health benefits to nearly 5.2 million members. The company is committed to delivering affordable health care products through a broad variety of plans for businesses and individuals. Based in Detroit since 1939, BCBSM supports impactful community initiatives and provides leadership in improving health care across Michigan. BCBSM is an independent licensee of the Blue Cross and Blue Shield Association. For more information, visit bcbsm.com and MiBluesPerspectives.com.
Source: 5.1.2023. Berlin, Vermont — Blue Cross and Blue Shield of Vermont
