Health Care Service May Add Okla.’s Largest Insurer

Article

Health Care Service Corp. is considering adding Blue Cross and Blue Shield of Oklahoma to its network of insurance providers in Illinois, Texas and New Mexico, according to the Associated Press and the Tulsa World.

The companies announced recently that they have signed a letter of intent to merge and are entering discussions on a final agreement. The deal would require regulatory approval.

Neither company provided a purchase price or details about how the deal would be structured. Neither Health Care Service of Chicago nor Blue Cross of Tulsa are publicly traded.

Health Care Service already operates Blue Cross and Blue Shield plans in Illinois, Texas and New Mexico, serving more than 9 million members.

Blue Cross and Blue Shield of Oklahoma is the state’s largest private insurer with about 500,000 policyholders. It’s a member of the Blue Cross and Blue Shield Association, a group of 40 independent insurance plans.

“Our companies share a vision of commitment to our members and service to our community,” said Raymond F. McCaskey, chief executive officer of Health Care Service. “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.”

McCaskey and Blue Cross president and CEO Ron King said the decision whether to go ahead with the deal will be based on how it would serve the companies’ members.

“Throughout the history of our company, we have based our decisions on the best long-term interests of our members,” King said. “This decision will be made on that basis.”

If the companies close the deal, no cuts are expected to Blue Cross’ 1,200 employees in Oklahoma, all but about 130 of whom are in Tulsa, said Bob Kieckhefer, spokesman for Health Care Service.