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Highmark outlines how it will absorb benefits firm
Saturday, July 04, 2009

Highmark Inc. has settled on a rough blueprint for the disassembling of one of its subsidiaries, Employee Benefit Data Systems.

The benefits management and processing firm was purchased by Highmark in 2006 and has operated as an autonomous business since then; but it is now in the process of being absorbed by Highmark, Pittsburgh's largest health insurer, and HM Insurance Group, another Highmark division.

A memo sent out last week said business process outsourcing, specialty billing and group billing functions will all be transferred to HM Insurance Group. Consumer-driven health products (such as individual health insurance plans), and direct billing will be handled by Highmark's mainline operation.

Employee Benefit Data Systems' information systems will reside at Highmark's corporate data center. The "transition team" charged with devising the new blueprint hopes to have "detailed implementation plans to move these lines of business and all supporting functions" by year's end.

Employee Benefit Data Systems employees should know where they'll end up and what their new jobs will be by the end of the third quarter.

"More information about Highmark, HMIG and their business capabilities will be shared with eBDS employees during the next two weeks," the memo said.

Bill Toland can be reached at btoland@post-gazette.com or 412-263-2625.
First published on July 4, 2009 at 12:00 am