Montana AG gives initial approval to Blue Cross merger with Illinois insurer

2013-06-25T18:30:00Z 2014-07-02T06:15:40Z Montana AG gives initial approval to Blue Cross merger with Illinois insurerMissoulian State Bureau
June 25, 2013 6:30 pm  • 

HELENA – Montana Attorney General Tim Fox gave his conditional approval late Tuesday for a portion of Blue Cross and Blue Shield of Montana’s proposed merger with an Illinois health insurer.

Fox said the $40.2 million purchase price that Health Care Service Corp. proposed to pay for Blue Cross is a “fair market value” for the company, and that the money will go to a new nonprofit charity called the Montana Healthcare Foundation.

In an order, Fox said the two firms have to close the deal within 60 days and transfer the money to the foundation.

Fox’s order is only part of the approval needed for the proposed merger, focusing on the market value of the transaction.

State Auditor Monica Lindeen, who regulates insurance in Montana, also must decide whether the merger is in the public interest, regarding its effect on Montana consumers and health insurance markets.

Lindeen has yet to issue her final order on the proposed merger, although she and Fox agreed in April to recommend approval of the merger if the companies agreed to several conditions – including the creation of 100 new jobs in the state.

HCSC, based in Chicago, is the country’s fourth largest private health insurer. It would join forces with Blue Cross, the largest private health insurer in Montana, with about 250,000 customers.

HCSC has more than 13 million customers in Illinois, Texas, Oklahoma and New Mexico.

Fox also said as Blue Cross sells other assets that won’t be transferred to HCSC, it must submit monthly reports to his office on the dissolution of the company and the transfer of that sale revenue to the new foundation.

Plans for the foundation will be revealed later this week, Fox said.

Copyright 2015 All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

No Comments Posted.

Missoulian Civil Dialogue Policy

Civil Dialogue Policy for Commenting on

We provide this community forum for readers to exchange ideas and opinions on the news of the day. Passionate views, pointed criticism and critical thinking are welcome. Comments can only be submitted by registered users. By posting comments on our site, you are agreeing to the following terms:

Commentary and photos submitted to the Missoulian ( may be published or distributed in print, electronically or other forms. Opinions expressed in's comments reflect the opinions of the author, and are not necessarily the opinions of the Missoulian or its parent company. See the Terms of Service and Privacy Policy for more information.

Our guidelines prohibit the solicitation of products or services, the impersonation of another site user, threatening or harassing postings and the use of vulgar, abusive, obscene or sexually oriented language, defamatory or illegal material. You may not post content that degrades others on the basis of gender, race, class, ethnicity, national origin, religion, sexual orientation, disability or other classification. It's fine to criticize ideas, but ad hominem attacks on other site users are prohibited. Users who violate those standards may lose their privileges on

You may not post copyrighted material from another publication. (Link to it instead, using a headline or very brief excerpt.)

No short policy such as this can spell out all possible instances of material or behavior that we might deem to be a violation of our publishing standards, and we reserve the right to remove any material posted to the site.

Add Comment
You must Login to comment.

Click here to get an account it's free and quick

Search our events calendar