P&T
Our
Other
Journal
MediMedia Managed Markets
Managed Care

 

Anthem-WellPoint Deal A Windfall for Two States

MANAGED CARE December 2004. © MediMedia USA
Legislation & Regulation

Anthem-WellPoint Deal A Windfall for Two States

John Carroll
MANAGED CARE December 2004. ©MediMedia USA

John Carroll

The Anthem-WellPoint merger is a done deal, thanks to buyer Anthem's generous offerings to two states whose approvals were needed to create the largest health insurer in the country. The merged entity, to be called WellPoint and have headquarters in Indiana, will have 28 million members in 13 states.

Anthem chairman Larry Glasscock will serve as CEO of the new company, with WellPoint's CEO Leonard Schaeffer becoming the chairman. "This merger is a great strategic and geographic fit," Schaeffer tells the Los Angeles Times.

It certainly appears to be a great fit for California and Georgia.

When California insurance commissioner John Garamendi backed off his heated opposition to the Anthem-WellPoint merger, he left with a smile, carrying off some $265 million in pledges from the managed care giant for programs that catered to the uninsured and underserved areas of the state.

The charitable contributions he wrangled from the deal include $35 million for health care clinics, $15 million to provide coverage for uninsured children, and $15 million to cover the cost of a training program for new nurses — all on top of $200 million over 20 years for programs to enhance health care quality.

Three days after the California settlement was announced in mid-November, Georgia Insurance Commissioner John Oxendine concluded that the citizens of his state "deserved better." And if Anthem wanted his blessings on the deal — which includes Blue Cross and Blue Shield of Georgia — he told reporters, it would required some "sweetening."

On November 30, Oxendine approved the deal after Anthem agreed to provide a total of $126.5 million for health care programs in his state. Georgia for the next 20 years will receive 2 percent of the Anthem investment stock portfolio to buy bonds to expand and improve rural health centers in the state, according to the Wall Street Journal.

Anthem expects to build telemedicine centers at 36 rural hospitals and clinics in the state. "It is vitally important to our state to ensure that our rural citizens have equal access to the best possible health care," Oxendine tells the Atlanta Journal-Constitution.

Meetings

Pharmaceutical Pricing and Contracting Conference Philadelphia, PA September 22–23, 2014
Private Health Insurance Exchanges Conference Washington, D.C. October 7–8, 2014
National Healthcare Facility Management Summit Palm Beach, FL October 16–17, 2014
National Healthcare CFO Summit Las Vegas, NV October 19–21, 2014
National Healthcare CXO Summit Las Vegas, NV October 19–21, 2014
Innovative Member Engagement Operations For Health Plans Las Vegas, NV October 20–21, 2014
4th Partnering With ACOs Summit Los Angeles, CA October 27–28, 2014
2014 Annual HEDIS® and Star Ratings Symposium Nashville, TN November 3–4, 2014
PCMH & Shared Savings ACO Leadership Summit Nashville, TN November 3–4, 2014
World Orphan Drug Congress Europe 2014 Brussels, Belgium November 12–14, 2014
Medicare Risk Adjustment, Revenue Management, & Star Ratings Fort Lauderdale, FL November 12–14, 2014
Healthcare Chief Medical Officer Forum Alexandria, VA November 13–14, 2014
Home Care Leadership Summit Atlanta, GA November 17–18, 2014