Highmark Inc. is selling its lucrative Medicare processing business to a Florida-based Blue Cross Blue Shield insurer to quell federal officials' concerns that its purchase of West Penn Allegheny Health System would represent a conflict of interest. Diversified Service Options of Florida, a subsidiary of Blue Cross and Blue Shield of Florida Inc., is expected to complete the acquisition of Highmark Medicare Services Inc. by Jan. 1. Officials declined to release a purchase price but described the transaction as "a stock deal." Highmark Medicare Services generated about $100 million in revenue, but Highmark officials said the loss of those funds would have little impact on the bottom line for the $15 billion to $16 billion insurer.
