FAQs: AmeriHealth Mercy acquisition

August 1, 2011

On August 9, Independence Blue Cross and Blue Cross Blue Shield of Michigan announced their alignment

Q: Who bought AmeriHealth Mercy?

A: Independence Blue Cross (IBC) and Blue Cross Blue Shield of Michigan (BCBSM) are now co-owners of AmeriHealth Mercy, with IBC owning 60% and BCBSM owning 40%.

Q: Who initially had ownership of AmeriHealth Mercy?

Q: What will happen with Mercy Health Plan's interest in Amerihealth Mercy?

A: Mercy Health Plan will be paid $170 million for its 50% ownership interest. BCBSM will acquire a minority interest in AmeriHealth Mercy. Furthermore, the Mercy Health Foundation will receive a series of contributions over a period of seven years.

Q: What appeal does AmeriHealth Mercy and this partnership create?

A: AmeriHealth Mercy has operational and care capabilities and is one of the country's largest Medicaid companies. The partnership investment will help the Blues establish a national presence in the Medicaid market. It also can help pioneer new ways of doing business that will enhance the health and wellness of the people and communities served.

Q: What additional services and benefits would this partnership produce?

A: AmeriHealth Mercy currently offers pharmacy benefits management and behavioral healthcare to 3.2 million Medicaid, Medicare and SCHIP beneficiaries in 11 states. The partnership will allow AmeriHealth Mercy to become better positioned to offer turnkey, cost-effective, comprehensive Medicaid managed care coverage and services nationwide.

Q: What is Medicaid managed care?

A: It is designed to provide quality health care at a lower cost than fee-for-service Medicaid. Due to current budget distress in the government, many states may turn to Medicaid managed care.

Q: Who is the executive at IBC?

A: In 2010, Daniel J Hilferty transitioned to IBC president and CEO after serving at AmeriHealth Mercy for 13 years in the same capacity.

Q: Who is the executive at BCBSM?

A: BCBSM's president and CEO is Daniel J Leopp

Q: Who is the executive at AmeriHealth Mercy?

A: Michael A Rashid is president and CEO.