Univera's parent company merging with Albany health plan [The Buffalo News, N.Y.]

May 22—The Rochester-based parent company of Western New York health insurer Univera Healthcare is affiliating with an Albany-based health plan, which will create a massive organization with nearly 6,000 employees and almost 2 million members across the state.

The affiliation, announced Wednesday between Univera's corporate parent the Lifetime Healthcare Cos. and CDPHP, would allow the health insurers to keep their local brands and identities "while gaining economies of scale through shared technologies, systems, processes and resources as part of one corporate family," the companies said in a statement.

The affiliation is subject to approval by state and federal regulators. If approved, the Lifetime Healthcare Cos. would become the parent company of CDPHP.

"We're confident that the Lifetime Healthcare Companies and CDPHP will accomplish even more together with this affiliation," said Faheem Masood, chair of the Lifetime Healthcare Companies boards of directors. "The health insurers are like-minded in mission, and their shared commitment to our communities will help make health care better for us all."

The affiliation comes at a time when health care and drug costs continue to rise, which has pushed health plans to trim back-office expenses and to raise member premiums to keep pace. Such a partnership could allow the organizations to share resources and also gain leverage — via increased scale — in negotiations with health care providers.

CDPHP President and CEO Dr. John D. Bennett said the affiliation should help deliver better health outcomes, boost member satisfaction and control the rising cost of care in the communities they serve.

CDPHP employs 1,400 people in the capital region and has 400,000 members in 36 counties.

The Lifetime Healthcare Cos. has about 4,500 employees and has 1.5 million members across 39 counties in New York. Lifetime includes Excellus BlueCross BlueShield, Lifetime Benefit Solutions, MedAmerica Insurance Co. and Univera.

Univera, which serves the eight-county Western New York region, has about 540 employees and leases office space in Amherst. Univera merged into Excellus Inc. in 2001.

If and when the affiliation receives approval, the companies stressed in their announcement Wednesday that each plan under the larger organizational umbrella "will remain local and highly responsive to the unique needs of their respective communities."

While the organizations wait for approvals, services will continue as usual for members, the companies said.

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