Posted: May 3, 2013 8:47 AM by Marnee Banks - MTN News
HELENA - The merger of Montana's largest health insurance company has cleared one more hurdle.
Former Montana Supreme Court Justice William Leaphart recommended approval of the merger between Blue Cross Blue Shield of Montana and Health Care Service Corporation on Thursday.
His findings show that Blue Cross has experienced significant underwriting losses over the last four years, and the company is ill-suited to weather the financial uncertainty associated with the Affordable Care Act.
Blue Cross President Mike Frank says larger insurers are better positioned to succeed in the new marketplace.
In order for the $18 million merger to be completed, the Commissioner of Securities and Insurance Monica Lindeen and Montana Attorney General Tim Fox must now sign off on the deal.
Leaphart presided over the hearings held on the proposed deal back in February.