RightCHOICE announces network agreement with Blue Cross and Blue Shield of Kansas City.ST. LOUIS--(BUSINESS WIRE)--March 1, 1996--RightCHOICE Managed Care, Inc. (NYSE NYSE See: New York Stock Exchange : RIT RIT, n See therapy, regenerative injection. ) and 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 Kansas City Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). have reached a network access and financial reinsurance Financial Reinsurance, also known as 'fin re', is a form of reinsurance which is focused more on capital management than on risk transfer. In the non-life segment of the insurance industry this class of transactions is often referred to as finite reinsurance. agreement designed to make the two companies more competitive in the Missouri market. As a result of the agreement, members of either plan who are enrolled through statewide employers or associations will be able to use the provider network of the Blue Cross and Blue Shield company where they live. The network access agreement will improve RightCHOICE's ability to serve statewide accounts, facilitate enrollment of members in its recently formed health maintenance organizations (HMOs) outside metropolitan St. Louis, and potentially allow RightCHOICE to share underwriting risks and profits on approximately 10,000 additional members. "Cooperation between RightCHOICE and the Kansas City plan is a customer-focused strategy, responding to the challenge of today's more mobile work force and a more competitive health care benefits market," stated Frederic C. Brussee, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of RightCHOICE. "We will better serve statewide employers and associations by streamlining our processes and offering the value of preferred provider networks and HMOs -- regardless of where their employees or associates live in Missouri." Currently, RightCHOICE's 30,000 members residing in the Kansas City plan's license area are unable to access the Kansas City plan's preferred networks. Likewise, 40,000 members of a Blue Cross and Blue Shield of Kansas City subsidiary residing throughout RightCHOICE's Alliance trade area cannot access Alliance preferred network services in those areas. Through a financial reinsurance transaction between the two plans' subsidiaries, HALIC Insurance Co., formerly known as Healthy Alliance Life Insurance Company, and Missouri Valley Life and Health, RightCHOICE can share underwriting risks and profits on a net increase of 10,000 members, while reducing administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. . RightCHOICE Managed Care, Inc., the publicly held subsidiary of Blue Cross and Blue Shield of Missouri, is the largest provider of managed care services in Missouri, covering more than 1.6 million members. CONTACT: RightCHOICE Managed Care Inc., St. Louis Sandra Van Trease (314) 923-4828 Clara Webb Kinner (314) 923-6268 |
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