California Insurance

Under the supervision of national authorities and Blue Cross Blue Shield Association, Wellpoint has the right to use widely respect for the Blue Cross names and trademarks. To exercise this right, there must be partners in a dominant position Deal with another company, which is why the treatment of health services has been structured as an acquisition system of the single currency. But Dr. Hasan insists that the operation was really a “merger of equals’.

Blue Cross Once a trademark is a great advantage of the approach to other Blue Cross plans, the largest remaining non-profit group, insurers health care industry World Big Business, Much higher mergers and courtyards.

Indeed, although the treasure their independence, most Blue Cross and Blue Shield plans are changing in some ways, could lead to that mergers and acquisitions. Initially, Blue Cross Blue Shield plans and communication between health insurance because they were heavily regulated by states and are often rewarded with subsidies and discounts on the rates of hospital. But in recent years, many Blue Cross plans lost their special treatment and businesses have adopted similar values to those of commercial insurance companies.

Among the 66 Blue Cross and Blue Shield associations in the country, four have sold reserve units, six others are facing this kind of movement and the rest are at different stages of the merger is considering the sale or IPO, ” said Kenneth S. Abramowitz, an analyst health with Sanford C. Bernstein. In addition to Blue Cross of California, part of plans in Indiana, Missouri and Wisconsin have also sold reserves available to the public.

Blue Cross plans are increasingly tended to adopt for-profit strategies for a variety of reasons. Among other things, they say they could increase and investors needed capital at a reduced price. And several experts noted that the national Blue Cross franchise limited to a state or geographical area for a for-profit, or can be affiliated with the regional supply and a large national economy employer.

At least for the moment, all Blue Cross plans at least one foot in the nonprofit sector, even if they operate listed companies, longtime preserve the benefits state laws. Until Mr. Schaeffer convinced the national Blue Cross Association for the modification of rules in the past year, they should remain non-profit or give up the valuable Blue Cross trademark. But already the vast majority of organizations such as maintenance of health for the benefit of subsidiaries. In New York, Empire Blue Cross Blue Shield, and has recently asked the regulatory authorities for permission to establish a for-profit-Managed-Care unit.

The proposed merger of M. Schaeffer and Dr. Hasan would combine two HMO’s benefit to move from close neighbors in Woodland Hills. The offices of Wellpoint Health Systems and Dr. Hasan’s neighbours are at Oxnard Street. Blue Cross of California, in the same building as Wellpoint.

With a turnover of $ 6 billion per year, would begin Unicare of the nation as one of the five largest insurers based on premium revenues, behind Kaiser Permanente, Prudential Life Insurance, United Health Care and Michigan Blue Cross and Blue Shield.

But Health Systems said in a letter late last week that Well Point and Blue Cross of California, “violates” on March 31 by the convention “do not cooperate with HSI together in the pursuit of the acquisition of certain activities, including but not limited to, filing a joint proposal under Blue Cross / Blue Shield of New Jersey. ” The letter said that Wellpoint had “its own proposal” at the New Jersey plans without notice health systems.

New Jersey has a direct interest, because the state recently passed a law allowing Blue Cross Blue Shield and a mutual insurance company. This could contribute to that following a public call for Managed Care business at the regional level, “said Fred Hillman, a spokesman for the New Jersey-plan. Mr. Hillman said he could not decide if it were any openings of the California health plans.