Delaware Blue Cross, the state’s largest insurer, signed an affiliation agreement with Pittsburgh based insurer, Highmark, Delaware’s governor questions some aspects of the plan.
Delaware Blue Cross President Tim Constantine says the agreement will allow the carrier to compete with larger companies. He says it has been looking for a partnership like this since 2006.
The plan must be approved by Delaware Insurance Commissioner Karen Weldin Stewart’s department. That process could take about six months.
Governor Jack Markell issued a statement questioning some aspects of the association. He asked that a thorough and transparent of the review process be done.
Among the areas of the Governor’s concern:
Potential for job loss in Delaware
Preservation of BCBS’s substantial commitment to our community and the health and welfare of Delawareans
Continued integrity of the reserves that accrued over time here in Delaware for benefit of Delawareans
Financial sustainability of BCBSDE if some of the for-profit entities under the Highmark Health Insurance Company umbrella meet with less success
Highmark had previously sought an unsuccessful merger with Independence Blue Cross of Philadelphia. The company serves 4.7 million people in several states including West Virginia.