Sioux Falls, SD – Avera Health and DAKOTACARE have signed a letter of intent in which Avera Health will purchase DAKOTACARE. The announcement was made Thursday.

This new merger will create the second-largest health insurance provider in the state of South Dakota with nearly 200,000 members. Wellmark Blue Cross Blue Shield of South Dakota is the largest with Sanford Health Plan being the third largest according Argus Leader Media.

Avera Health and DAKOTACARE will still operate as two separate companies. There are no plans at this time to cut staff according to Rob Bates, president of Avera Health. KELO-TV