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Health Care Service Corp. will pay an undisclosed sum to buy third-party administrator Trustmark Health Benefits, the Blue Cross and Blue Shield company announced Thursday.
HCSC has been a Trustmark customer and relies on it to manage self-insured customers’ medical spending, according to a news release. Trustmark Health Benefits is a subsidiary of Trustmark Cos., an employee benefits vendor.
The acquisition will help the not-for-profit insurer customize benefits plans for self-funded employers, the company said. HCSC sells Blue Cross and Blue Shield plans in Illinois, Montana, New Mexico, Oklahoma and Texas and has nearly 17.5 million members. The transaction is expected to close this year, subject to regulatory approval.
HCSC and Trustmark Health Benefits didn’t immediately respond to interview requests.
Trustmark Health Benefits generated $147.2 million in revenue in 2021, down 3.7% from the year before, a drop driven by declining sales to self-insured employers during the COVID-19 pandemic, according to the company’s most recent annual report.
The company inked a deal with Teladoc Health and the Aon professional services firm to launch a virtual-first plan for employers last year. Additionally, Trustmark Health Benefits partnered with the company Included Health last year to offer navigation services for LGBTQ employees and their dependents.
HCSC’s planned acquisition of Trustmark Health Benefits continues its strategy to expand offerings for commercial customers, a critical area of the insurer’s business as its Medicare Advantage market share declines. Last year, the company invested an undisclosed sum in Collective Health, a digital health startup that provides third-party administration, patient navigation, and advocacy and analytics services to employers. As part of the deal, Collective Health created a digital platform for HCSC’s self-funded employer customers in Illinois and Texas.
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