Anthem challenges bid for New Mexico Blues

The fight involves two companies that have been active in acquiring Blues plans throughout the country.

By Julie A. Jacob, amednews staff. Sept. 25, 2000.

Less than two months after Blue Cross Blue Shield of New Mexico accepted a $55 million purchase bid from Chicago-based Health Care Service Corp., Indianapolis-based Anthem Inc. is asserting that the New Mexico Blues didn't give the insurer a fair chance to bid on the plan.

Although the Health Care Service Corp.'s bid was the highest one, Anthem, which has a reputation as an aggressive bidder for Blues plans, contends that it wasn't given the opportunity to present all the reasons why it should be picked as the buyer of the New Mexico Blues.

Anthem wrote the New Mexico Dept. of Insurance July 27 complaining that it didn't have a chance to fully make its case for its $40 million to $45 million bid.

"Unlike [the bidding process in other states], it didn't seem to be a clearly defined process," said Anthem spokeswoman Lauren Green-Caldwell. "We felt we didn't have an opportunity to explain all the elements of the proposal."

That's nonsense, said the Health Care Service Corp.

"There was a full and open bidding process, and the New Mexico Blues picked us over them," said HCSC spokesman Robert Kieckhefer.

Despite Anthem's protest, the New Mexico Blues has no intention of reconsidering its decision to accept the HCSC's offer, said Michelle Welby, the New Mexico Blues' spokeswoman. "We're still proceeding with seeking regulatory approval [for the HCSC deal]. Anthem has acquired several Blues plans, and we were surprised that they said they were not aware that their 'best and final offer' really was a 'best and final offer.' "

The HCSC is the parent company of Illinois Blue Cross Blue Shield and Texas Blue Cross Blue Shield. Anthem owns Blues plans in Colorado, Connecticut, Indiana, Kentucky, Nevada and Ohio.