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Missouri health insurance landscape changes again

October 29, 2003
By: Joi Preciphs
State Capital Bureau

JEFFERSON CITY - About 1.4 million Missourians may soon receive their health insurance from the country's newest and largest managed care company.

Missouri is one of 13 states that must approve the $16.4 billion merger between managed care providers Anthem, Inc. and WellPoint Health Networks, Inc.

Both companies gained both notariety and criticism in the insurance industry over the last ten years for converting Blue Cross plans into for-profit businesses.

WellPoint currently operates four subsidiaries in Missouri, including Blue Cross and Blue Shield of Missouri, which it acquired in 2002.

The announcement comes at a time when the Missouri Chamber of Commerce says businesses throughout the state are concerned about rising premiums and the availability of health insurance plan alternatives.

"It's one of the highest priorities our employers have right now -- especially the small businesses which make up most of our membership," said spokesperson Karen Buschmann.

The chamber conducted a survey recently that shows more employers in the state have been shifting a larger share of health insurance premium costs to their employees and increased deductibles to lessen the overall financial burden they carry.

Buschmann said that more consumer driven options for affordable coverage should be in place to make sure businesses and employees aren't overtaxed.

State Insurance Department spokesman Randy McConnell said the agency hasn't fully determined the impact of the merger on the competitiveness of Missouri's health insurance market.

WellPoint's Blue Cross and Blue Shield of Missouri, the largest provider of health insurance in the state, serves about 900,000 members in 85 counties throughout southeast Missouri.

McConnell said close to a half million Missourians were served by other WellPoint companies last year, including Healthy Alliance, Blue Choice and HealthLink.

For now, not much stands in the way of the merger's approval by the Missouri Insurance Department. McConnell said red flags typically go up for regulators if merging companies are combining market shares based on areas where there's competition.

"Because Anthem has no companies operating in Missouri, the situation is different," he said.

McConnell said the department will continue reviewing antitrust regulations and conduct a public hearing before giving its final approval.