CHICAGO, Nov. 1 /PRNewswire/ -- Health Care Service Corporation (HCSC) today announced completion of a merger with Blue Cross and Blue Shield of Oklahoma (BCBSOK). The transaction solidifies HCSC’s position as the largest non-investor-owned health insurer in the nation and the fourth-largest overall and pushes HCSC membership past the 10 million mark.
HCSC, founded in 1936, is a not-for-profit mutual legal reserve company that provides health insurance coverage through its divisions: Blue Cross and Blue Shield of Illinois, Blue Cross and Blue Shield of Texas and Blue Cross and Blue Shield of New Mexico. Blue Cross and Blue Shield of Oklahoma becomes the fourth such division.
“Our companies share a vision of commitment to our members and service to our community,” said Raymond F. McCaskey, CEO of HCSC. “In our expansion to Texas and New Mexico, we have demonstrated the value of local management, backed by the financial and organizational strength of a national organization. Because both of our companies are non-investor-owned, we can continue that model without diverting resources or attention away from our policyholders.”
Blue Cross and Blue Shield of Texas merged into HCSC in 1998. Blue Cross and Blue Shield of New Mexico was acquired by HCSC in 2001.
HCSC and BCBSOK announced their intent to pursue a merger last December. Since that time, the transaction has been approved by the boards of directors of both organizations and by BCBSOK’s members and HCSC’s policyholders. The Oklahoma Insurance department approved the merger in July following a hearing in Oklahoma City. State insurance officials in Illinois and Texas also have approved the merger.
“HCSC is committed to operating for the benefit of our members - not for investors,” McCaskey said. “We are committed to the communities we serve and to a local focus in operating all of our divisions. The smooth and speedy completion of our merger with Oklahoma -- a financially sound and extremely well-run Plan -- indicates this is a good model for other non-investor-owned Blues who may be seeking to gain the benefits of scale in the marketplace while retaining their local functions.”
BCBSOK President Wyndham Kidd said the merger “will best serve our members in Oklahoma and HCSC’s members throughout the Southwest and Midwest.”
Blue Cross and Blue Shield of Oklahoma is the oldest and largest private health insurer in Oklahoma. HCSC is an independent licensee of the Blue Cross and Blue Shield Association.
Health Care Service Corporation
CONTACT: (In Chicago): Bob Kieckhefer of Health Care Service Corporation,+1-312-653-6629, or (In Tulsa): Linda Sponsler of Blue Cross and BlueShield of Oklahoma, +1-918-592-9401
