Chicago, Illinois – as new laws have been enacted to back the health reform program in the United States, it is for the health insurance giant Blue Cross and Blue Shield Association to once again spread its wings. This is so as the insurance once again move again to accommodate a small health insurance company which is on the verge of bankruptcy. With this, it is the expectation of the medical industry for Blue Cross to satisfy its customers and patrons with the kind of insurance service that it is known for.
The new update for Blue Cross came after Alpha Health Insurance of Indianapolis offered its entity to widen Blue Cross servitude to the public but with the provision that Blue Cross will pay Alpha a sum of 10 million dollars.. This is after Alpha has been majorly hit by the economic downturn that hit the United States. The thing is evidenced by the decrease in Alpha’s fund thereby causing for the said insurance company not to be able to satisfy health insurance claims from its customers. Insiders from Alpha mentions that it is the fault of the management since the fund intended to pay out claims is used by the firm’s top management for their personal expenses. To this, the fund ran out causing Alpha to file for bankruptcy.
The acquisition of Alpha by Blue Cross is hoped to satisfy the former’s customers especially in terms of their insurance claims and other health benefits that are due to them. However, for the employees and middle management of Alpha, their fate as employees is still unsure as it is unclear whether they will be absorbed by Blue Cross or they will be totally retrenched. However, it is claimed by an insider from Blue Cross that it will maintain Alpha’s management team to ensure the organization’s efficiency.
With Blue Cross’ acquisition of Alpha, it is expected that Blue Cross will render its service to millions who need reliable health insurance. Furthermore, the acquisition is hoped to bring innovation to the health insurance industry as a whole as it is expected to better the health insurance undertakings in the country.