Blue Cross call suits Sebelius’ campaign

? At 53, John Ellis sports a ponytail, plays bass guitar and acknowledges his politics lean toward the liberal side, though he may sometimes vote Republican in local elections.

Preparing recently for a jam session at this small town’s senior center, in a converted white clapboard United Methodist Church, he declared that he’ll probably vote for Democrat Kathleen Sebelius in the governor’s race.

He liked Sebelius’ decision in February as insurance commissioner to block the proposed sale of Blue Cross Blue Shield of Kansas, the state’s largest health insurance company, to Anthem Insurance Companies Inc., of Indianapolis, which has about 10 million policyholders in nine states.

The companies have criticized Sebelius and said she is blocking a proposal designed to keep Blue Cross financially healthy. In June, a Shawnee County judge declared that Sebelius had no valid legal reason to block the sale, saying she based it on “mere speculation.”

But Sebelius has made her ruling an important part of her campaign for governor, arguing that it shows she has the courage to stand up to powerful special interests.

“She’s putting up a good fight on that,” Ellis said. “That’s getting down to the common man.”

Sebelius has mentioned the decision repeatedly while campaigning against Republican nominee Tim Shallenburger and in her television advertising.

Ads support decision

For example, one ad, “Real Difference,” showed a headline praising her decision while an announcer intoned: “One leader’s made a real difference for the people of Kansas.”

“I think it’s playing very well,” Democratic State Chairman Tom Sawyer said. “It definitely picks her up votes.”

Blue Cross actively sought the sale, arguing its long-term survival depended on new markets and greater access to capital.

Gubernatorial candidate Kathleen Sebelius talks with supporters at the Tangier Mall. Denying a Blue Cross Blue Shield of Kansas merger with Anthem while insurance commissioner has made a good impression with some Kansans.

Anthem planned to pay $190 million to acquire the Kansas company, and Blue Cross would have distributed at least $142 million of Anthem’s funds and $131 million of its existing reserves to policyholders, who own the Kansas insurer.

Blue Cross has 45 percent of the Kansas health insurance market, with 172,000 group and individual policies covering 400,000 people; another 315,000 people work for employers who self-insure but have their plans administered by the Blues.

Merger unpopular

The possibility of Kansas Blue Cross’ conversion into part of a publicly held, out-of-state corporation drew opposition from many Kansas doctors, hospitals and nurses, as well as an advocacy group for poor and working-class families.

In Bennington, about 100 miles west of Topeka, Ellis, a Blue Cross policyholder, was most concerned that his insurer would become part of an out-of-state firm. He spoke about politics as he and other members of the Kansas Country band set up for an afternoon performance.

“I think we need local, hometown insurance,” he said.

Sebelius concluded that premiums for people insured by Blue Cross would have increased too much if it were purchased by Anthem. But District Judge Terry Bullock said Sebelius’ reasons weren’t good enough under Kansas law.

She appealed to the Kansas Supreme Court, which isn’t likely to rule until after she leaves the commissioner’s office in January.

Opponent skeptical

Shallenburger hasn’t criticized her decision, though recently he suggested her motives were political.

“I’m not sure it was for the right reasons, and I’m not sure her legal arguments will hold water,” Shallenburger said.