BUFFALO, N.Y. — Highmark Inc. and HealthNow New York Inc. announced Tuesday they have agreed to combine their affiliations.
This plan brings together two not-for-profit Blue Cross Blue Shield health insurance plans to serve the communities of Western New York community, as well as Highmark’s Pennsylvania regions.
“The objectives driving this affiliation are focused on our shared desire for better health solutions for HealthNow members that can increase customer and clinician engagement, create better health outcomes, manage costs and improve affordability,” said David Holmberg, chairman of Highmark in a released statement. “This affiliation will also enable HealthNow to take advantage of Highmark’s resources, tools and advanced technologies.”
Under the agreement, Highmark Health will become the primary licensee of Blue Cross and Blue Shield Assocation for HealthNow's eight-county WNY service areas, pending regulatory approval.
“This affiliation is good for the people and communities we serve. Highmark has a unique business model, organized around the principles of partnership between payers and providers,” said David Anderson, president and CEO of HealthNow. “In addition, Highmark has been a leader among the Blues and in the broader industry in developing new capabilities and innovative Blue Cross Blue Shield products from which our members and customers will benefit.”
The agreement states:
- HealthNow will maintain its headquarters in Erie County, NY, as well as its regional office in Northeastern New York/Albany County, New York.
- HealthNow will be branded Highmark Blue Cross Blue Shield of Western New York and Highmark Blue Shield of Northeastern New York, preserving the health plan’s local identity.
- Highmark recognizes the importance of local influence over healthcare decisions and the importance of a local market presence. This includes recognition of the value of maintaining jobs in the local affiliate’s market and minimizing disruptive impacts on the local workforce.
- HealthNow Administrative Services, with locations in Blue Bell, PA and Sacramento, CA will also be part of the proposed transaction, maintaining TPA services for more than 100,000 customers.
“Highmark has a strong track record of successful relationships and affiliations with other Blue Cross and Blue Shield companies,” said Deborah Rice-Johnson, president of Highmark. “This affiliation will preserve the strong presence of a not-for-profit Blue organization that is committed to the health and vitality of the local communities it serves.”
The combined organizations provide health insurance to nearly six million people.