By: Amy Yurkanin

02/04/2015

Al.com

Decreased funding and changes in the model for mental health coverage have forced Alabama Psychiatric Services to shut its doors, effective Feb. 13, according to a statement released by the company.

The statewide psychiatric care group announced the closure yesterday to employees and posted signs in its offices blaming the closure on Blue Cross Blue Shield of Alabama. According to the letter to patients posted in an office on Montclair Road, Blue Cross Blue Shield of Alabama recently shifted several members to plans with higher co-pays and deductibles, and reduced membership in a plan that sustained Alabama Psychiatric Services.

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To Read Letter to Patients

By: Ayla Ellison

April 13, 2016

An executive at Chicago-based Health Care Service Corp., which operates Blue Cross plans in Illinois and four other states, told a court Tuesday that the proposed merger between Downers Grove, Ill.-based Advocate Health Care and Evanston, Ill.-based NorthShore University HealthSystem could be bad for the Chicago area.

Steve Hamman, senior vice president of provider engagement and enterprise network solutions at HCSC, served as one of the Federal Trade Commission’s witnesses in a hearing this week to block the proposed merger.

Under questioning from the FTC, Mr. Hamman said the combined system would have more leverage with payers that sell plans in the Chicago area and more bargaining power “typically manifests itself in higher prices for services,” according to the Chicago Tribune.

Mr. Hamman’s testimony supported the FTC’s argument that the merger would lead to higher healthcare costs for consumers and diminish incentives for the combined entity to upgrade services and improve quality.

However, under cross-examination it became clear Blue Cross has another reason to oppose the merger. The insurer is also worried that after the merger, Advocate and NorthShore would create their own health insurance company, according to the report.

Click To Read More at Becker’s Hospital Review

By David McLaughlin | March 2, 2016

www.insurancejournal.com

U.S. hospitals are stepping up their bid to stop Anthem Inc.’s takeover of rival health insurer Cigna Corp., saying the deal will increase the dominance of Blue Cross Blue Shield plans and potentially raise premiums for consumers.

The enhanced bargaining power of the Blue Cross plans will undermine competition and should compel the Justice Department to stop the deal, the American Hospital Association wrote in a letter to the department’s antitrust chief Bill Baer.

Blue Cross Blue Shield is an association of independent insurers operating across the country. Anthem operates health insurance plans under the brand in 14 states.

“The acquisition threatens to both reinforce existing barriers to entry and raise new ones, further entrench dominant Blue plans, and exacerbate conditions conducive to abuse of market or monopoly power,” according to the letter, which was dated Monday.

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