MedAmerica Insurance Company has acquired the long term care business of Blue Cross and Blue Shield of Minnesota through a reinsurance arrangement.
MedAmerica, a unit of Lifetime Healthcare Companies, Rochester, N.Y., is not saying how much it is paying for the business.
The business has accumulated 4,500 LTC insurance contracts that generate about $6 million in annual premium revenue and $500,000 in annual administrative fees, according to Minnesota Blue, Eagan, Minn.
The Minnesota Blue LTC insurance transaction is retroactive to April 1, 2006, but MedAmerica will not take over customer service and claim processing until Jan. 1, 2007, MedAmerica says.
Insurance agencies licensed to sell Minnesota Blue LTC coverage now can sell MedAmerica’s CareDirections Simplicity policy, MedAmerica says.
Customers who have Minnesota Blue LTC coverage can keep their current coverage for as long as they want, MedAmerica says.