Competition between Blue Cross Blue Shield companies is increasing after a 2022 antitrust settlement that struck down some agreements limiting competition between BCBS Association members, according to a July 13 report from Advisory Board.
In Pennsylvania, Independence Blue Cross will face competition from Highmark Blue Cross Blue Shield, which will begin offering plans in the Philadelphia area, according to the report.
The antitrust settlement, reached in August 2022, struck down rules that limited the share of revenue BCBS companies could make from non-Blues products and loosened restrictions on plans' abilities to compete for contracts with large employers.
"Now, Blues must prepare to contend with Blue-on-Blue competition, particularly in areas where multiple Blues plans already operate. Blues plans should evaluate how much of their value proposition is baked into Blue affiliation and local identity — and determine if that can stand up if and when another Blue moves in," Advisory Board analysts wrote.
BCBS companies are also responding to increased competition by partnering and combining with other companies and restructuring to allow for more for-profit investments.
Read the full report here.