Purchasing the stake in Benefit Management Corp., a Montana-based organization, was Great-West Life & Annuity, according to a Great-West news release. The insurer is controlled by Montreal’s Power Financial Corp.
The deal, now set to close during the second quarter of 2007, would add nearly 90,000 medical members to Great-West’s health care division, the company said.
Benefit Management’s main subsidiary is Allegiance Benefit Plan Management, which is the leading medical plan administrator for large employer groups inMontana, according to news reports about the deal.
In a statement, Great-West said the deal will allow it to acquire Allegiance’s physicians and hospitals network, as well as Benefit Management Corp.’s other subsidiaries. These include a new company that was created to sell fully-insured health plans inMontana and a company that provides medical management services, primarily in Montana.
“The transaction includes an attractive provider network, which will further enhance Great-West Healthcare’s strong provider network position withinMontana and its surrounding states. This is also an excellent growthopportunity within the fully insured marketplace,” said Raymond L. McFeetors, President and Chief Executive Officer of Great-West Lifeco Inc., in the company statement.
Great-West Healthcare, a division of Great-West Life & Annuity, is a national employee benefits provider with expertise in self-funding and health care management solutions. Nationally, the division operates a health care network that includes 4,275 hospitals and 578,000 providers and provides health care services to 2.2 million people.
Great-West Life & Annuity Insurance Company, headquartered in metro-Denver, serves its customers through a range of health care plans, life and disability insurance, annuities, and retirement savings products and services.