NU Online News Service, July 14, 2003, 12:25 p.m. EDT – MedAmerica Insurance Company, Pitttsburgh, has acquired a block of 18,000 long term care insurance contracts from ERC Long Term Care Solutions Inc., Avon, Conn.
ERC Long Term Care is a unit of General Electric Company, Fairfield, Conn., that administers and reinsures long-term care insurance policies.
The block that ERC Long Term Care sold to MedAmerica generates about $14 million in annual premium revenue and $1.3 million in annual administrative fees, MedAmerica says.
MedAmerica is not as well-known to the general public as some other large long term care insurers, but it notes that it now supplies 83% of the LTC business sold through U.S. Blue Cross and Blue Shield plans and their affiliates.
MedAmerica is a unit of Excellus Inc., Rochester, N.Y., the parent company of Blue Cross and Blue Shield plans that serve several communities in New York state.