WILKES-BARRE, Pa., June 3 /PRNewswire/ -- A strategic alliance between Blue Cross of Northeastern Pennsylvania (BCNEPA) and Highmark Inc. has begun, following the Pennsylvania Insurance Department’s (PID) approval of a new relationship proposed last year involving First Priority Health and First Priority Life Insurance Company.
Under the new relationship, BCNEPA will continue to hold majority ownership of both First Priority Health and First Priority Life Insurance Company, while Highmark will gain a minority interest. BCNEPA will continue to handle the day-to-day operations of both subsidiaries. Highmark will be entitled to elect board members commensurate with its ownership positions in both subsidiaries. There will be no change in the ownership or board composition of BCNEPA or Highmark.
The alliance allows BCNEPA and Highmark to share resources and to develop new products and services. It further enhances the companies’ successful business relationship of more than 65 years, while improving their ability to serve customers throughout northeastern and north central Pennsylvania.
For Blue Cross of Northeastern Pennsylvania, the agreement gives members a greater choice of health care products, enhanced customer support and a solid platform to launch new products.
“This is a win-win situation for our companies and for our communities,” said Denise S. Cesare, BCNEPA President and CEO. “Every day we look for innovative ways to improve the health and wellness of all our members, and this partnership does just that. It joins the community commitment of a local insurer, Blue Cross of Northeastern Pennsylvania, with the strength and resources of one of the nation’s largest health care insurers. Together, we can provide new products and services to members that we couldn’t do alone. It’s a partnership that really works.”
Ms. Cesare noted Blue Cross of Northeastern Pennsylvania is extremely “community focused” and has exceptional market strength and customer loyalty in northeastern and north central Pennsylvania, while Highmark has a broad product offering and heavy investment in technology.
“Both companies will gain economies of scale by taking advantage of Highmark’s investment in technology,” said Kenneth R. Melani, M.D., Highmark president and chief executive officer. “For example, Highmark will provide information technology support, so that functions like claims processing and enrollment can be conducted more effectively.”
The new alliance will be completely transparent to current First Priority Health cardholders.
Members will have full access to the First Priority Health provider network without interruption and will maintain their physician relationships. Customer service contacts and phone numbers will also remain the same.
BCNEPA, an independent licensee of the Blue Cross and Blue Shield Association, is a not-for-profit health care company headquartered in Wilkes- Barre, Pennsylvania. It offers a comprehensive portfolio of health insurance products and administrative services to approximately 610,000 individuals in 13 counties.
Highmark, also an independent licensee of the Blue Cross and Blue Shield Association, is a not-for-profit health care company headquartered in Pittsburgh. For more information about Highmark, visit http://www.highmark.com/ .
Highmark Blue Cross Blue Shield
CONTACT: Gerry Snyder of Blue Cross of Northeastern Pennsylvania,+1-570-200-6310, or fax, +1-570-200-6699, or gerard.snyder@bcnepa.com ; orPhil Neubauer of Highmark Blue Cross Blue Shield, +1-412-544-4221, or fax,+1-412-544-5318, or phil.neubauer@highmark.com
Web site: http://www.highmark.com/
