Philadelphia’s Independence Blue Cross and the Detroit-based Blue Cross Blue Shield of Michigan have finalized their agreement to buy AmeriHealth Mercy and its Medicaid expertise.
The insurers announced today some of the terms of the deal that NewsWorks first reported on in August: IBC will receive a majority interest in AmeriHealth Mercy, and BCBSM will have minority interest.
AmeriHealth Mercy is one of the country’s largest Medicaid companies and handles insurance plans for about 400,000 Medicaid-eligible Pennsylvanians. The new arrangement, according to today’s announcement, provides other Blue health plans around the country to expand into the Medicaid market.
IBC and BCBSM paid $170 million to buy out Mercy Health System’s share of AmeriHealth.