Blue Cross and Blue Shield of Colorado Signs Letter of Intent to Buy National Benefit Administrators, Continues to Pursue Growth Strategy in the West.DENVER--(BUSINESS WIRE)--July 2, 1997--Blue Cross and Blue Shield Blue Shield A US not-for-profit health care insurer that is a reimbursement intermediary for physicians. Cf Blue Cross. of Colorado (BCBSCO) announced today that it has signed a letter of intent to acquire National Benefit Administrators Inc. (NBA NBA abbr. 1. National Basketball Association 2. National Boxing Association NBA (US) n abbr (= National Basketball Association) → Basketball-Dachverband (= ) from Acordia of Colorado Inc. The transaction is expected to be completed by the end of August 1997. NBA provides administrative services to 75 employers, including school districts, municipalities, hospitals and manufacturers. The company provides third-party administration of health care and flexible employee benefits in Colorado and several other states. NBA was founded in 1985 and is based in Colorado Springs Colorado Springs, city (1990 pop. 281,140), seat of El Paso co., central Colo., on Monument and Fountain creeks, at the foot of Pikes Peak; inc. 1886. It is a year-round resort and a booming military, technological, and commercial city. . "The acquisition of NBA is part of our overall strategy to increase market share in Colorado and surrounding states," said David Kikumoto, chief executive officer of BCBSCO. "NBA will broaden our product portfolio and help us serve an even wider range of customers. Combining NBA's ability to administer a variety of health care benefit plans with BCBSCO's range of benefits, services and broad physician and hospital networks will be very attractive to employers." NBA will function as a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of BCBSCO. The company will remain headquartered in Colorado Springs and will operate as a separate business under the NBA name. The ownership change should be virtually invisible to NBA's customers, according to Steve O'Dell, executive vice president of BCBSCO. "We will ensure that NBA customers continue to receive the outstanding service they are accustomed to," he said. "Through its relationship with BCBSCO, NBA will be able to expand the benefit options currently available to NBA customers." Founded in 1937, BCBSCO and its subsidiaries serve 370,000 Colorado members through HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, , PPO PPO abbr. preferred provider organization PPO Managed care Preferred provider organization, see there Infectious disease Pleuropneumonia-like organism, see there , point-of-service, and traditional health plans. BCBSCO serves 48,000 Nevada members as a result of its merger with Blue Cross and Blue Shield of Nevada. The company also offers employer-sponsored life and disability insurance, and third-party administration for dental and workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. . CONTACT: Blue Cross and Blue Shield of Colorado, Denver Steve O'Dell, 303/831-2406 |
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