One of the country's oldest provider-owned health plans is being acquired by Blue Cross and Blue Shield of New Mexico, a division of Health Care Services Corporation.
Lovelace Health Plan, the insurance division of six-hospital Lovelace Health System in New Mexico, will be acquired in a deal with HCSC expected to close by the end of the year, on undisclosed terms.
"After careful consideration, Lovelace Health System made the strategic decision to focus on growing its primary, specialty and acute care services, providing greater access to high-quality and compassionate care throughout the region," said Ron Stern, Lovelace Health System president and CEO, in a media statement explaining the decision to sell the 40-year-old health plan, which now covers about 100,000 members.
"Blue Cross and Blue Shield is a proven, trusted and local partner, and we are confident this is the right option for our patients and health plan members," Stern said.
The decision also comes after Lovelace Health Plans saw its membership reduced almost in half, losing 84,000 Medicaid members during the state's recent managed care contract changes.
For Lovelace Health Systems, the sale is a way to focus on patient care, and for Blue Cross and Blue Shield of New Mexico (BCBSNM), it's a gateway into New Mexico's Albuquerque market, where many of Lovelace Health Plans commercial and Medicare Advantage members are based.
"We welcome Lovelace Health Plan members to our network and we look forward to working closely with Lovelace, members, doctors and other healthcare professionals to address each individual's evolving health care needs while helping them successfully navigate the evolving health care system," Kurt Shipley, BCBSNM president, said in a media release.
The acquisition will increase BCBSNM's membership by more than a third, to about 388,000, as part of more than 13.1 million members covered by HCSC's four Blue Cross insurers in Illinois, Texas, Oklahoma and New Mexico.
The acquisition will also mean that Lovelace Health Plan members migrating to BCBSNM will have new network options, with access to providers in the multi-speciality group ABQ Health Partners, after the medical group and Lovelace Health Plan ended a contract last year.