Coalition fights sale of Blue Cross

Health-care groups join to oppose sale of state's largest insurance provider

? A group of hospitals and health care consumers joined forces Tuesday to oppose the proposed sale of Blue Cross and Blue Shield of Kansas to an Indianapolis-based insurance giant.

“Blue Cross of Kansas is really one of the best Blue Cross plans in America,” said Maynard Oliverius, chief executive officer of Stormont-Vail HealthCare of Topeka. “We feel it is important to keep Blue Cross of Kansas based in Kansas.”

Anthem Insurance Companies of Indianapolis, a for-profit firm, has proposed paying $190 million to acquire Kansas Blue Cross, which is the state’s largest provider of health insurance and operates on a not-for-profit basis.

In February 2002, then-Insurance Commissioner Kathleen Sebelius rejected the sale. A few months later, a state judge struck down Sebelius’ order. The Kansas Supreme Court will consider the state’s of the decision appeal March 5.

Oliverius said he hoped that the state Supreme Court would uphold Sebelius’ decision, and if it doesn’t, Oliverius said he hoped the court would send the proposal back to Insurance Commissioner Sandy Praeger for further work.

Spokesmen for the coalition of businesses, hospitals and doctors said Anthem’s acquisition price was too low. The coalition also expressed fears that insurance premiums would skyrocket under Anthem.

Anthem has denied the transaction would increase premiums, saying instead that the merger would increase the financial strength of Kansas Blue Cross.

“Our intent has always been to keep a strong Blue Cross plan here in Kansas,” said Mary Beth Brutton, a spokeswoman for Kansas Blue Cross.

In voicing its opposition to the Anthem-Blue Cross deal, the new coalition introduced legislation Tuesday that would tighten rules governing such acquisitions.

The measure before the House Insurance Committee would give policyholders and the insurance commissioner more say in the process of converting mutual companies into stock-owned companies.

Bill Roy, a former congressman from Topeka, also has joined the coalition.

“We can’t afford to sell Kansas Blue Cross at any amount,” he said.

Roy said he feared that if Anthem owned the company, it might decide to stop writing certain kinds of insurance coverage if the policies weren’t profitable enough to Anthem officials..