Kan. doctors have say in Anthem merger

The state's medical society will be able to present evidence and testimony on the impact of the insurer's deal with Kansas Blue Cross Blue Shield.

By Julie A. Jacob, AMNews staff. Dec. 10, 2001.

Kansas Insurance Commissioner Kathleen Sebelius has granted the Kansas Medical Society's petition to intervene in the hearings on the proposed merger between Blue Cross and Blue Shield of Kansas and Indianapolis-based Anthem Inc.

The commissioner's decision to grant intervenor status means the state medical society is formally recognized as an interested party to the merger and can present evidence about the impact of the merger at public hearings.

Kansas Medical Society Executive Director Jerry Slaughter said the society had filed for intervenor status so society staff could review merger documents and "make sure concerns of physicians were considered."

So far, the society does not have an official position on the merger, Slaughter said. But he added that physicians are wondering, "How will Anthem differ from the Kansas Blues on practice guidelines, utilization review and medical policies? How will contracts be affected?"

Anthem announced May 31 that it had reached an agreement with the Kansas Blues to purchase the company for $190 million. Kansas Blues policyholders will receive an additional $180 million as cash payments. Anthem, which recently converted from a mutual insurer to a publicly traded stock company, has 7.5 million members and operates Blues plans in Colorado, Connecticut, Indiana, Kentucky, Maine, Nevada, New Hampshire and Ohio. The addition of the Topeka-based Kansas Blues would add 715,000 people to Anthem's membership. As part of the merger, the Kansas Blues will have to convert to a for-profit insurer. [...]