Today I am proud to welcome Blue Cross and Blue Shield of Vermont to the Blue Cross Blue Shield of Michigan family of companies with the approval of the affiliation by the Vermont Department of Financial Regulation. This affiliation pioneers a better way for nonprofit Blue Cross and Blue Shield licensed plans to work together.
We and the Vermont plan share a vision for the future. Our member-first philosophies, compatible cultures, commitment to our employees and appreciation for local values are the cornerstones of our affiliation. Our vision is focused on bringing together two like-minded nonprofit Blue Plans to deliver innovative and affordable products in the Vermont market, create a differentiated health care experience and strengthen our competitive position in a rapidly evolving and increasingly competitive landscape.
For Blue Cross Blue Shield of Michigan and our stakeholders, our partnerships with other Blue Plans, like Vermont, enable growth, foster collaboration and help us serve our customers and members with innovative solutions while striving for affordability.
This ground-breaking agreement, maintains a Vermont organization with governance, operational and policy decisions made locally. Each of our organizations will continue financially as single-state plans, as this is an affiliation and not an acquisition. Blue Cross Vermont continues under the same name, with the executive leadership team and workforce based in Berlin, Vermont. Premiums generated from each health plan will stay in the respective states and are used to pay claims, administer plan operations and maintain reserves and will be handled by locally-based customer service representatives.
Our new model signals opportunities for other nonprofit Blue Plans to partner with us in new and unique ways. I am excited for the possibilities this holds for the future. As a diversified organization, we strive to make health care costs affordable and predictable for members and customers, while offering high-quality health care solutions and a best-in-class provider network. I know our partners share these goals. Together, we look forward to advancing nonprofit health care benefitting our members, customers, providers and communities far into the future.