CHICAGO — Health Care Service Corporation (HCSC) has signed a definitive agreement with Trustco Holdings, Inc. (Trustmark) to purchase its wholly owned subsidiary, Trustmark Health Benefits (Health Benefits), which is a leading third-party administrator of health benefits. The acquisition will provide HCSC with additional capabilities to serve a broader set of customers seeking customizable and flexible health benefit solutions.
Health Benefits designs and offers custom plans that help manage costs through innovative solutions, data transparency and member-centric support.
“We are proud to add this asset to our portfolio to continue to meet the diverse and evolving needs of our self-funded customers,” said Opella Ernest, M.D., executive vice president of commercial markets for HCSC. “This arrangement reflects HCSC’s continuous commitment to expand access to affordable, quality health care.”
HCSC is the largest customer-owned health insurer in the United States serving more than 17 million members.
“Today’s employers are facing increasing pressures and challenges,” said Kevin Cassidy, president, national accounts, HCSC. “With this acquisition, we’re making it easier for employers of all sizes to have access to our expansive provider networks, our data-driven insights and coordinated approach to care that focuses on quality and value. This isn’t a one-size-fits all world – and we recognize that Health Benefits can help give more customers access to our service strengths.”
Trustmark, a leading national employee benefits provider, offers voluntary benefits, fitness management solutions and small-group health plan administration.
“With this transaction, I am confident that, with HCSC, Health Benefits and its associates will be well-positioned for future success,” said Trustmark President and CEO, Kevin Slawin. “Trustmark will focus on markets where we can grow in the future, deliver differentiated capabilities for our clients and members and lead at a national level. In an evolving work environment, we will accelerate our efforts to become vastly more consequential in the markets we serve by helping employers offer benefits that build engaged, healthy teams.”
Health Benefits will continue to support its existing employers and members with the same level of service following the acquisition.
“HCSC has been a highly valued customer for several years,” said Nancy Eckrich, President, Trustmark Health Benefits. “We see this as a culmination of that relationship, and the entire Health Benefits team is looking forward to further expanding our reach to offer more employers flexible, customized benefit solutions, now backed by the resources and relationships of HCSC.”
Completion of the transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close later this year.
Barclays acted as exclusive financial advisor and Foley & Lardner LLP served as legal counsel to HCSC. Houlihan Lokey acted as exclusive financial advisor and Latham & Watkins LLP served as legal counsel to Trustmark in connection with the transaction.
About Health Care Service Corporation
Health Care Service Corporation is the country's largest customer-owned health insurer, with nearly 17.5 million members in its health plans in Illinois, Montana, New Mexico, Oklahoma and Texas. A Mutual Legal Reserve Company, HCSC is an independent licensee of the Blue Cross and Blue Shield Association.
About Trustmark Mutual Holding Company
Trustmark, through its operating divisions and subsidiaries, offers specialized expertise in voluntary benefits, self-funded health plan design and administration for smaller employers, and the delivery of wellness, fitness, recreation, and injury prevention and treatment programs. Visit us at https://trustmarkbenefits.com/.