Blue Shield of California has made significant strides in its restructuring efforts, with the launch of Stellarus, a sister company aimed at helping nonprofit plans compete with their for-profit counterparts. Recently, Stellarus announced partnerships with two new Blues plans, Blue Cross Blue Shield of Kansas and Hawaii Medical Service Association.
These partnerships will see BCBS of Kansas and HMSA utilizing Stellarus’ technology platform, which includes a comprehensive data hub supporting services like member engagement and prior authorization automation, as well as a digital health record. As part of the deal, both BCBS of Kansas and HMSA will take stakes in Stellarus and have representation on the company’s board.
Stellarus’ platform consolidates over 60 datasets, including clinical, claims, and demographic data, to power tools for member communications, population health management, and payment integrity. Additionally, the platform supports Blue Shield’s innovative pharmacy care model, which aims to reduce costs by outsourcing pharmacy benefits functions to multiple vendors.
Blue Shield’s goal with Stellarus is to offer services to other Blues plans that they may not have the resources to develop themselves. The partnerships with BCBS of Kansas and HMSA mark a significant step towards achieving this goal, with both plans expressing their belief that investing in Stellarus will enhance their technological capabilities while maintaining their independence.
Dr. Mark Mugiishi, CEO of HMSA, highlighted the benefits of collaborating with like-minded, mission-driven health plans to innovate and solve common challenges. Similarly, Matt All, CEO of BCBS of Kansas, emphasized the opportunity to build a modern, connected system that simplifies healthcare and makes it more affordable and personalized.
By partnering with Stellarus, the nonprofit Blues plans aim to reduce administrative and healthcare costs, enabling them to compete more effectively in a challenging landscape. As the healthcare industry faces declining profitability and increasing costs, the need for innovative solutions like Stellarus becomes more apparent.
While it is still early days for Stellarus, the company has the potential to attract a wide range of clients, including other nonprofit insurers seeking tech solutions. With 32 of the 33 independent Blues plans being nonprofit, there is a significant market for Stellarus to tap into.
As Stellarus continues to grow and expand its client base, the company’s financial performance remains a key focus. With Blue Shield’s strong financial backing and revenue generation, Stellarus is well-positioned to drive innovation and efficiency in the healthcare industry.
Overall, the partnerships with BCBS of Kansas and HMSA demonstrate Stellarus’ commitment to supporting nonprofit plans and driving positive change in the healthcare landscape. With a focus on technology, innovation, and cost-saving solutions, Stellarus is poised to make a significant impact in the industry.
