Anthem sells $5B stake in Blue Cross and Blue Shield of Ohio to help them survive in Obamacare

The nation’s second-largest health insurer is making a $5 billion cash investment in BlueCross BlueShield of Ohio, a new corporate entity that is expected to be profitable and generate a cash flow of more than $1 billion.

Anthem is the second-biggest insurer in Ohio, and the largest health insurer in the country.

BlueCross will invest $5.8 billion in the new entity.

Blue Cross plans to expand its BlueCross Health Plan in 2020, the company said Tuesday in a statement.

The company has made significant investments in the health insurance industry and its expansion of its Blue Cross Blue Shield plans will help to strengthen the industry and create more affordable, high-quality health insurance options, the statement said.

Anthem has also purchased a minority stake in Cigna, the nation’s largest health plan.

Cignas chief executive officer and chief operating officer said Tuesday that the company plans to launch a premium-indexing program in the fall.

Anthem said that the plan is “expected to be in full operation by the end of 2019.”

Anthem will also make investments to further strengthen its BlueShield health plan in 2020 and 2019, and to provide a broad range of affordable and high-value plans, the new insurer said.