We are One Team working together to optimize our talent, resources, technologies and skillsets to better serve our members, beneficiaries, groups, plans and clients.
THE NEW NASCO
Latest Information
As part of our commitment to transparent communications, we’ve created The New NASCO microsite as a centralized resource to help keep all of us up-to-date with the most recently shared information. It’s our promise to you to continue to provide opportunities for you to ask questions and find the answers and information you need. Together, we’re working to achieve our common goal of becoming One Team across NASCO and Blue Cross and Blue Shield of Michigan (BCBSM).
Read John Ladaga's Message
Letter From John
Resources
Letter From John | Latest Information | Resources
As we set out on this journey several months ago to mold the future of NASCO, we assessed multiple options for future growth, and we determined that realizing our digital evolution and modernizing our platform was the direction that we needed to take to optimize our future and grow. While we knew that executing our digital evolution would enable us to stay current with market trends, meet our customers’ needs and win new business, we also knew that we needed a fundamental shift in our governance model and a more focused capital infusion to do so — both of which are addressed by ownership consolidation. When I was thinking about how excited I was to share this news with you, our new mindsets and behaviors immediately came to mind. And while I can clearly link each of our mindsets to the strategy behind this ownership consolidation, one in particular really resonated with me: catalyst. Our catalyst mindset is about boldly taking on new adventures and seizing opportunities to accelerate growth. I can’t think of a better mindset to have as we boldly take on the future of healthcare IT with a new, streamlined governance structure and an intensely focused product investment strategy. The future of healthcare is all about the speed at which companies can pivot, adopt new solutions or integrate with existing solutions to keep up with the rapidly changing and increasingly complex healthcare market. I am confident that this new governance structure will enable us to better serve our customers, position us for growth, and guide us into a bright future; and I am eager to boldly take on this new adventure with each of you!
LETTER FROM JOHN LADAGA
OUR NEW LEADERSHIP
John Ladaga President & CEO
David Weeks Sr. VP
First Name, Last Name Title
The Background
Our Journey
What Does This Mean For Me?
Why Did BCBSM Decide To Buy NASCO?
What Happens Next?
NASCO Board and BCBSM began exploring ownership consolidation where BCBSM would be the sole majority owner of NASCO.
JAN 2021
BCBSM obtained all regulatory approvals.
OCT 2021
BCBSM executed a non-binding letter of intent to all current NASCO plan owners, detailing BCBSM’s intent to purchase 100% of the equity of NASCO.
JULY 2021
Sandbox developed a “deal book” outlining NASCO’s strategic planning and vision, product and market competiveness, sales and marketing strategy, operating model, financial assessment, legal structure, potential risks and consolidation process. This work was agreed to by all of NASCO’s existing owners.
MAY 2021
Transaction complete. NASCO is now a wholly-owned subsidiary of BCBSM!
NOV 2021
BCBSM Board of Directors and NASCO Board of Directors negotiated definitive terms of the agreement and approved the transaction.
SEPT 2021
NASCO’s unique governance model — an Executive Board made up of representatives from each of our six owner plans — has served us well through the years; however, this model requires majority or unanimous Board approval for key strategic decisions, which has hindered our ability to function quickly and autonomously. To successfully execute our digital evolution strategy, we knew that status quo was no longer an option — a structure change was needed. NASCO products have evolved beyond being a claims platform and are deeply integrated into our Blue plan customers’ operations and support numerous strategic initiatives. While several options were considered regarding our governance structure change, the Board felt that it was in the best interest of NASCO for one of our current owner plans — BCBSM being the recommended option — to take full ownership of NASCO in order to accelerate our digital evolution and expand our product offerings to ensure our future and theirs.
We have all gone through so much change over the past couple of years, leaving many of us feeling uncertain and nervous about what the future held, but rest assured that this is good news! In fact, this change in ownership will ensure a continued legacy of innovation and a more focused product investment strategy for NASCO. Plus, the list of things NOT changing for you as a NASCO associate far exceeds what is changing. Take a look!
What's Changing - Ownership and governance; NASCO is a wholly-owned subsidiary of BCBSM - The acceleration of our digital evolution - Increased opportunities for cross-team collaboration - Alignment with BCBSM corporate goals
What’s NOT Changing - Our commitment to customer success - Our platforms, products and portfolios - Our focus on driving cultural transformation through mindsets and behaviors - Our focus on business growth and providing innovative products that support Blue plan strategies and improve member health and care - Our executive leadership team - Our current remote working environment - Your role - Your manager - Your 2021 goals and objectives - Benefits and compensation - STIP bonus structure
BCBSM has had a minority ownership interest in NASCO since our inception in 1987, and was the first Blue plan to process national account business on the NASCO platform. Through the years, NASCO has been deeply embedded in BCBSM, providing claims processing and other services for approximately four million BCBSM members (nearly ¾ of BCBSM’s total membership) across a wide range of the health plan’s business. Additionally, NASCO supports all BCBSM lines of business through various non-claims products, such as customer servicing, customer advocacy, membership, enrollment and billing. BCBSM sought complete ownership interest in NASCO to further enable the health plan’s business strategy and to ensure the stability and longevity of NASCO’s core products through a more focused product investment strategy.
“BCBSM has had a decades-long business partnership with NASCO, and this feels like a natural progression to further innovate and add scale,” said Bill Fandrich, Senior Vice President and CIO for BCBSM. “We are excited about this stronger partnership with NASCO. Together, we will bring unprecedented market capabilities beyond anything we are providing independently today.”
This section will be updated regularly as transition activities progress, so be sure to check back often for updates. We appreciate your patience and your flexibility as we explore these new, uncharted waters together, learning from one another and with one another as we grow!
Work Streams
Work streams are grouped into categories of Process, Technology, People and Customer. The objective of these work streams are to transform and to grow the business.
Work Stream Priority Summary
- Define and establish One Team governance - Develop Integrated Program Plan and Office - Align corporate functions - Continue to align platforms and resources to include claims, testing and membership & billing solutions - Launch Change Management and Cultural Evolution
We’ve collaboratively built 14 work streams composed of executives, leaders and subject matter experts from both organizations dedicated to guiding the transition to One Team.
What to Expect Day One
Day One is an exciting time with NASCO and BCBSM IT coming together to begin our journey as “One Team” working to optimize our talent, resources, technologies, skillsets and mindsets in order to better serve our Members, Beneficiaries, Groups and Plans through the continued evolution of our platforms & products in support of our future technology ecosystem as a fully owned subsidiary of BCSBM. Leaders at NASCO and BCBSM have been coming together to define the capabilities, processes and integrations that are guiding the transition. As part of our commitment to transparent communications, here’s an overview of what you can expect to see now and throughout the next few months.
Frequently Asked Questions
Glossary
Structure and Governance
Still Have Questions?
EXECUTIVE LEADERSHIP
David Weeks Senior Vice President, Chief Digital and Technology Officer
Chris Hauser Senior VIce President, Chief Financial Officer
Jim Veiger Senior Vice President, Operations
Barbara Bell-Dees Vice President, Human Resources
Board of Directors
Tricia Keith, SVP, Emergent Holdings | Ken Dallafior, SVP, Health Plan Business | Paul Mozak, CFO, BCBSM Bill Fandrich, CIO, BCBSM | John Ladaga, CEO, NASCO
Bill Fandrich, EVP, BCBSM
Tricia Keith, EVP, Emergent Holdings
Ken Dallafior, SVP, Health Plan Business
Operating Committee
Market Advisory Committee
Product Portfolio Councils
Paul Mozark, CFO, BCBSM
John Ladaga, CEO, NASCO
EXECUTIVE BOARD
OTHER GOVERNANCE COMMITTEES
News Release
INFORMATION UPDATED SEP. 14 2023
Click here for an overview of NASCO’s new governance and BCBSM key functional areas and leaders.
From The Desk of Daniel J. Loepp BCBSM President and CEO
BCBSM & NASCO ONE TEAM MATERIALS
Emerging Markets finalizes sale of Advantasure to UST HealthProof March 21, 2023 I am pleased to share the news that Blue Cross Blue Shield of Michigan’s Emerging Markets division has completed the sale of its services and technology solutions subsidiary, Advantasure, to UST HealthProof, a division of UST Global. The sale that was initially announced in September 2022 has received regulatory approvals, and Advantasure is now well-positioned to modernize solutions, develop new products and deliver quality services to its customers. I look forward to Advantasure’s continued support in serving BCBSM Medicare beneficiaries in Michigan and around the nation and maintaining our leading position in the Medicare Advantage market. Through a multi-year contract agreement with UST HealthProof, Emerging Markets’ Medicare Advantage teams will continue to receive services from Advantasure, as it transitions from business unit to vendor partner. Emerging Markets remains committed to our government and property and casualty markets. The completion of the Advantasure sale enables us to shift resources and capital to our three core businesses — Medicare Advantage, Property and Casualty, and Medicaid — while balancing growth and performance. We will continue to build our capability for national Medicare Advantage market growth through SHS and Emergient (our joint venture partners), in addition to increasing efforts in Medicaid and other government markets. We will also continue to build and diversify in our property and casualty markets through the alignment of Emerging Markets subsidiary AF Group and Southfield-based AmeriTrust Group... READ MORE
One Team Announcements
THE NEW NASCO NARRATIVE
View the recent update to the 2022 IT and ACoE Divisional Goal Performance
BACK
Bill Fandrich, CIO, BCBSM
Tricia Keith, SVP, Emergent Holdings
FROM THE DESK OF DANIEL J. LOEPP PRESIDENT AND CEO September 14, 2023 To: All employees at BCBSM and BCN and communications contacts at Emerging Markets, LifeSecure, NASCO and TRIARQ Earlier today, I informed the Blue Cross Blue Shield of Michigan Board of Directors of my decision to retire at the end of next year - effective December 31, 2024. My notice provides the Board’s Executive Committee with ample time to carry out a thorough and detailed national search to identify and recruit the best possible leader to continue our enterprise’s growth trajectory and commitment of service to our members long into the future. As you can imagine, it’s not an easy decision to step away from the best job I’ve had, leading a company of such significant importance to the lives of millions of people, and one that is only beginning to realize its potential for diversifying into an enterprise of national scale. But it’s the right decision and this is the right time to make it. My decision to retire is not related to the health issue I shared earlier this year. I’ve recovered, and I’m feeling strong and focused. However, I want to maximize my good health and spend time accomplishing some important life goals that for more than 20 years have been subordinated to my responsibilities at work. When Dick Whitmer announced his retirement in 2004, after two decades as CEO, he gave the Board of Directors time to find a successor and he gave me the benefit of mentorship as I began my new responsibilities. My plan to remain President and CEO through 2024 allows this same time to conduct a thorough succession process, and for me to have the opportunity to provide guidance and insight to my successor as they step into their role in leading our enterprise. I am very proud of the achievements we have shared over these past two decades. I am honored to have led such an accomplished and dedicated senior management team, and to have worked directly with our manystakeholders – customers, members, physicians, health systems, community leaders and others – to develop solutions to meet their challenges. I am tremendously proud of the work you have done. Our enterprise employees – at every level – have embraced change, innovated to bring forward new ideas, rallied through challenges and carried on with determination to grow our business and fulfill our commitments to the people we serve. Thank you for your support over the years, and for it now as we look to the future. Click here to watch my video message about this announcement. Daniel J. Loepp President and CEO This information is for internal use only, as it can contain proprietary or confidential information. It is not to be shared outside the company. BACK
INFORMATION UPDATED JUN. 16 2023
A Personal Update from BCBSM President and CEO June 16, 2023 Over the years, I have stressed the significance of making sure that we all take time to care for our physical and mental health. It is important for us to not only stay on top of routine checkups but listen to our bodies when we feel something’s not right and to talk with our doctor about it. Currently, I’m taking my own advice and am adjusting my schedule to deal with my own health issue. In recent weeks, I’ve experienced fluctuations in blood pressure that left me feeling lightheaded and affected my balance. I am getting treatment from my doctor and am feeling better. In the meantime, I’m adjusting my schedule to put myself in the best possible position for healing and I appreciate your support. While I remain thoroughly involved in the daily operations of our company, I have reduced my travel and cut back on parts of my schedule that require more physically active involvement. These changes – including stepping away from attending the Detroit Regional Chamber Mackinac Policy Conference at the end of May and the upcoming National Management Association meeting – will allow me to fully recover more quickly. As I did when I had COVID-19 last year, I hope that sharing this information encourages you to be observant and proactive when it comes to your own health, to maintain strong relationships with your physicians and to make time to be well and heal when you need it. Our work is important to our members, providers and all our stakeholders. We serve them best when we are at our best. Thank you for your continued extraordinary work, and I look forward to seeing you in-person soon. Daniel J. Loepp President and CEO BACK
Bill Fanrich, CIO, BCBSM
COMING SOON: THE NEW NASCO NARRATIVE
One Team: One Hour Workstream Overview - Video In this recorded session you can learn more about the ten cross-company collaborative Transition Workstreams taking place during the first 120 days as a wholly-owned subsidiary of BCBSM.
One Team: One Hour Workstream Overview Learn about our ten cross-company collaborative workstreams and their important role in guiding our transition as a wholly-owned subsidiary of BCBSM.
IT & Analytics CoE Webinar
One Team Annoucements
DANIEL J. LOEPP MESSAGE TO NASCO EMPLOYEES TO MARK NASCO’S 35-YEAR ANNIVERSARY NASCO team members: Blue Cross Blue Shield of Michigan has been an essential part of NASCO since 1987, when we began the move from the General Motors claims system processing solution to the NASCO Processing System (NPS). As one of the original founders and owners, we’ve had a front row seat in watching NASCO’s evolution. Few could have predicted that Blue Cross Blue Shield of Michigan would one day emerge as NASCO’s sole owner; however, over the past 35 years of working together, we’ve developed a shared alignment on our mission and vision. As we celebrate this significant milestone in NASCO’s history, the future has never been brighter for an organization committed to helping to define the health care ecosystem. Many new technologies and integrations have occurred over the past 35 years -- however, the secret to NASCO’s success relies on the basic foundation that was established in 1987: make Blue lives better. Congratulations to NASCO and all of your associates for your contributions and dedication across the decades to improving health care. Daniel J. Loepp President and CEO, Blue Cross Blue Shield of Michigan
INFORMATION UPDATED MARCH 29. 2022
