Health Care Service Corporation Completes Sale of Academic HealthPlans
March 27, 2018
Long-Term Services Agreement Will Help Ensure a Seamless Transition for More than 100,000 Student Health Plan Members
Health Care Service Corporation (HCSC) announced today it has completed the sale of its wholly-owned subsidiary, Academic HealthPlans, Inc. (AHP), to Terry Lyons, AHP’s founder and current CEO. As part of the transaction, HCSC entered into a multi-year services agreement with AHP to continue providing marketing and administrative services for HCSC’s student health insurance business (AcademicBlue).
Since acquiring Texas-based AHP in 2012, HCSC has grown to become the leading provider of student health insurance policies across its five states – Illinois, Montana, New Mexico, Oklahoma and Texas. AHP serves over 100,000 student members across the country, working with multiple health plan partners and approximately 70,000 HCSC AcademicBlue members.
“AHP has been instrumental in helping HCSC provide quality, affordable health insurance plans for students. Together with AHP, we look forward to a seamless transition for our student health members,” said Carl McDonald, senior vice president and treasurer, HCSC, and chair of the board of directors of AHP. “HCSC continues to optimize its portfolio of subsidiaries to deliver the greatest strategic and financial value while sharpening its focus on its core business areas in group, government and retail.”
“We are pleased to begin AHP’s next chapter as an independent company, and look forward to continuing to provide our superior service to a growing number of college and university clients,” said Terry Lyons, president and CEO at AHP. “We have enjoyed our association with HCSC, and look forward to maintaining our significant partnership with the company.”
Financial terms of the transaction were not disclosed.