By mid-2022, it will have to complete the transaction for the merger of GuideWell Mutual Holding Corporation, a parent company of Blue Cross and Blue Shield of Florida, Inc., and Triple-S Management Corporation, with a capital value of approximately $ 900 million. which will have to expand health care services to patients under their health and insurance coverage.
Initially, the insurer announced that the coverages and policies of the customer portfolio – of more than 1 million people – will remain the same.
The company noted that the merger “seeks to streamline strategic plans focused on promoting greater affordability, access and equity in health.”
Roberto García-Rodríguez, President and CEO of Triple-S Management in Puerto Rico, participated in the roundtable yesterday alongside Pat Geraghty, President and CEO of GuideWell and Florida Blue, to provide information on the transaction. He said access to services in Florida – where a considerable number of Puerto Ricans move to reside or visit – will be part of the issues to be discussed in the new corporate structure.
“For now, Triple-S policyholders maintain current coverage, with access giving you their current policy,” he reiterated.
Under the terms of the agreement, GuideWell will acquire all of Triple-S Management’s common stock at $ 36.00 per share, representing a premium of approximately 49% of Triple-S’s weighted average trading price per 90-day volume. Management.
“This is a tremendous opportunity to unite two health organizations that share the same culture and customer service, which accelerates our plans to grow in the Hispanic community in the United States. Florida Blue and Triple-S Management are recognized by the its affordable, high-quality medical care, rooted in the well-being of the community, ”Geraghty noted.
He specified that the transaction will be carried out in cash and reported that the merger will not represent the reduction of Triple-S personnel in Puerto Rico. The company has about 4,000 employees on the Island.
“What we’re looking for is to grow, not downsize. We’ll be better together. The transaction expands GuideWell’s core insurance operations and positions Florida Blue and Triple, in a significant growth and value creation for customers and populations that we serve, ”Geraghty added.
Retains the Triple-S brand
Triple-S Management – with more than 60 years of experience in the healthcare services market – has a wide portfolio of products in the Medicare Advantage, Medicaid, life, property and accident insurance segments.
It was reported that once the agreement is reached, Triple-S Management will have the exclusive right to use the Blue Cross Blue Shield brand throughout Puerto Rico and the US Virgin Islands. As a subsidiary of GuideWell, Triple-S will continue to operate under its name.
Pat Geraghty, President and CEO of GuideWell and Florida Blue, alongside Roberto Garcia-Rodriguez, President and CEO of Triple-S Management in Puerto Rico. > Supplied
“The combination brings together industry leaders and is based on complementing companies, assets, cultures and strategic visions. Joining our community-focused teams is a great achievement for our companies as well as for Puerto Rico. , Florida and our shareholders. We have long admired Florida Blue’s focus on attention and share its respect for the uniqueness of each community it serves, “said Garcia-Rodriguez.
He stressed that partnering with a strong organization that shares the same service mission helps them achieve the company’s strategic goals, as well as expanding access and improving health care outcomes for members of the patient network.
“This transaction is clearly in the best interest of our shareholders, given the strategic adjustment and current price of our shares and the resulting liquidity for shareholders,” Garcia-Rodriguez said.
GuideWell, which is part of a family of businesses, including Florida Blue, focuses on health care and provides services to more than 45 million people in the United States.
In the case of Florida Blue, it is the largest and oldest health insurer in Florida, serving more than 5 million members in the state’s 67 counties.
It was also stated that Triple-S Management and Florida Blue will work together to launch relevant solutions to the Latin American community and that brand recognition in Puerto Rico is expected to benefit Florida Blue, as it projects that Puerto Rican communities and Hispanics continue to experience accelerated growth in Florida.
The agreement between the two companies will create a leading Medicare provider in the United States, which will allow Florida Blue and Triple-S Management to compete with other insurers in Florida and Puerto Rico.
As explained by the two executives, the transaction is expected to close during the first half of 2022, subject to conditions, including the review and approval of regular state and federal regulations, as well as the approval of Triple-S shareholders. Management.