Highmark Inc. of Pittsburgh is selling its multi-state Medicare claims processing subsidiary, Highmark Services Inc., to avoid a conflict of interest.
Highmark Services Inc. processes Medicare claims for the federal government for Pennsylvania, New Jersey, Maryland, Delaware and the District of Columbia. Highmark Inc. recently acquired West Penn Allegheny Health System. That means Highmark Services Inc. would have ended up end up processing claims for another subsidiary of its parent company, Highmark Inc.
To avoid the conflict, Highmark Inc. is selling Highmark Services Inc. for an undisclosed price to Diversified Service Options, a wholly-owned subsidiary of Blue Cross and Blue Shield of Florida Inc. and the holding company for First Coast Service Options, according to a press release from Highmark Inc.
Despite change in ownership, Highmark Services Inc. will continue to operate as a separate, independent organization, the press release stated.
