Perhaps the most important single benefit to result from the merger of CareFirst and WellPoint will be the $1.3 billion that WellPoint has agreed to pay to complete the transaction. The money is to be shared by the three jurisdictions – Maryland, Delaware and the District of Columbia – where CareFirst currently operates.

In similar acquisitions, money resulting from the conversion of not-for-profit Blues Plans has been used to endow charitable foundations with a focus on health care. Such foundations can help extend health care coverage to the uninsured and under served, expand prescription drug programs for seniors, provide funds for medical research, or direct money to existing organizations dedicated to meeting community health needs.

The $1.3 billion purchase price will create – on a per capita basis – the largest charitable foundation ever resulting from the conversion of a not-for-profit Blues health plan. Each jurisdiction will determine how it uses its share of the purchase proceeds. But the annual earnings on funds in the charitable trusts – coupled with premium taxes that a for-profit CareFirst would pay – could produce upwards of $100 million annually, creating a sustaining source of revenue to address pressing health care needs.