STATE OF MAINE
DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
BUREAU OF INSURANCE
| IN RE: APPLICATION OF |
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| ASSOCIATED HOSPITAL SERVICE |
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| OF MAINE d/b/a BLUE CROSS |
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| AND BLUE SHIELD OF MAINE TO |
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| CONVERT TO A STOCK INSURER |
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| AND VOLUNTARILY LIQUIDATE |
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| AND Dissolve |
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ANTHEM’S SUMMARY OF |
| IN RE: APPLICATION OF ANTHEM |
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WITNESS TESTIMONY |
| HEALTH PLAN OF MAINE, INC. TO |
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| ACQUIRE THE ASSETS OF |
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| ASSOCIATED HOSPITAL SERVICE |
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| OF MAINE D/B/A BLUE CROSS AND |
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| BLUE SHIELD OF MAINE AND |
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| RELATED TRANSACTIONS |
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| Docket NO. INS 99-14 |
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| (CONSOLIDATED) |
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March 10, 2000 |
In accordance with the Superintendent’s Scheduling Order, Anthem notifies the
Superintendent and all parties that it may call the following as witnesses at the
evidentiary hearing scheduled for April 3-7, 2000:
Larry Glasscock
Mr. Glasscock is the Chief Executive Officer of Anthem. His testimony is expected to
relate to history, management, stability, rating, and operations of Anthem; its reasons
for seeking to affiliate with BCBSME; consolidation and other changes ongoing in the
health insurance industry; factors affecting successful health care insurance management;
benefits and fairness of transaction with BCBSME (including the Maine Partners and Central
Maine Partners Plans); Anthem’s operating philosophy and strategic objectives; the
manner in which Anthem organizes itself to deliver health services, including corporate,
shared, regional and local functions; and accreditation and recognition of Anthem and its
health plans. Mr. Glasscock may testify concerning other matters contained in the Form A
Application filed by Anthem, and may also give testimony in response to testimony offered
by others.
Michael Smith and/or Cynthia Miller
Mr. Smith is the Executive Vice President and Chief Financial Officer of Anthem. His
testimony is expected to relate to Anthem’s financial condition and performance;
historical and projected financial statements concerning Anthem and BCBSME; operating
results, surplus, capital adequacy and other measures of Anthem’s financial
condition; Anthem’s investment portfolio and policy; Anthems financial ratings;
advantages of Anthem’s financial strength; Anthem’s increased focus on the
health care insurance market; intercompany service agreements; advantages and benefits of
the transaction with BCBSME (including the Maine Partners and Central Maine Partners
Plans); efficiencies associated with the transaction; source of funds for the purchase;
financial issues related to regional operations; matters related to the Comparative
Premium Rate Analysis; and matters relating to allocation of liabilities relating to
Medicare operations. Mr. Smith may testify concerning other matters contained in the Form
A Application filed by Anthem, and may also give testimony in response to testimony
offered by others.
Ms. Miller is Vice President and Chief Actuary of Anthem. Her testimony may be
substituted for Mr. Smith’s on one or more of the above topics.
David Frick
Mr. Frick is the Executive Vice President and Chief legal officer of Anthem. His
testimony is expected to relate to the transaction between Anthem and BCBSME as described
in the Asset Purchase Agreement and related documents; the assets purchased and
liabilities assumed; provisions concerning Patriot Mutual Insurance Company; the purchase
of Machigonne stock; the Bulk Reinsurance Agreement, Bill of Sale and Assumption of
Liabilities and its effects; effect of the transaction on the BCBSME provider network and
related contracts; the purchase price for the transaction and adjustments thereto;
distribution of funds to the Maine Healthcare Foundation; intercompany service agreements;
other material terms of the Asset Purchase Agreement and their effect; the impact of the
transaction on competition in insurance in Maine; and the fairness and benefits of the
transaction. Mr. Frick may testify concerning other matters contained in the Form A
Application filed by Anthem, and may also give testimony in response to testimony offered
by others.
James Parker
Mr. Parker is the Vice President of Public Affairs of Anthem. His testimony is expected
to relate to the continuity of community benefits and support after the acquisition,
including with respect to charitable matters; the formation of a local advisory board;
post closing employment commitments; continuity of the Blue Cross and Blue Shield
tradition; and other matters relating to the expected local operations of Anthem BCBSME.
Mr. Parker may testify concerning other matters contained in the Form A Application filed
by Anthem, and may also give testimony in response to testimony offered by others.
Robert Scalettar, M.D.
Dr. Scalettar is the Corporate Medical Director of Anthem and the Chief Medical
Director of Anthem Blue Cross of Connecticut. His testimony may relate to the formulation
and administration of medical policy within Anthem, including participation of local
physicians; case management; utilization management; local regional and corporate aspects
of medical decision making in the Anthem organization; quality of care matters; the manner
in which local medical decisions are made; the role of local medical directors;
Anthem’s approach to provider networks. Dr. Scalettar may testify concerning other
medically related matters contained in the Form A Application filed by Anthem, and may
also give testimony in response to testimony offered by others.
John Jesser
Mr. Jesser is a Vice President of Anthem Midwest, Northern Ohio Region. His testimony
is expected to relate to the nature of local and regional operations and activity within
the Anthem organization, including product development; quality improvement; network
development; sales and marketing; medical management and case management; grievances and
appeals; regional support activities; and matters relating to the foregoing.
Anthem reserves the right to have any of the foregoing witnesses address matters within
the matters designated with respect to other witnesses. Anthem also reserves the right to
supplement this designation to the extent that other parties, in their designations of
witness testimony or otherwise, raise issues which they have not yet identified in their
responses to date to Anthem’s and BlueCross BlueShield of Maine’s Joint
Discovery Requests, dated February 4, 2000, and to the extent that the Superintendent
permits testimony on issues not explicitly listed in his November 5, 1999 Notice of
Hearing.
Dated: March 10, 2000
_____________________________
James B. Zimpritch, Esq.
Jeffrey M. White, Esq.
Catherine R. Connors, Esq.
PIERCE ATWOOD
One Monument Square
Portland, Maine 04101-1110
(207)791-1100
Attorneys for Anthem Insurance Companies, Inc
CERTIFICATE OF SERVICE
The undersigned hereby certifies that on March 10, 2000 a copy of Anthem Insurance
Companies, Inc.’s Summary of Witness Testimony was served by United States mail,
first class postage prepaid, email, or, where indicated, by hand delivery, on each of the
persons listed below.
Robert S. Frank, Esq.
Harvey & Frank
Two City Center
P.O. Box 126
Portland, Maine 04112
e-mail: frank@harveyfrank.com
(Blue Cross/Blue Shield of Maine)
Judith Chamberlain, Esq.
State of Maine
Department of the Attorney General
6 State House Station
Augusta, Maine 04333-0006
e-mail: judy.chamberlain@state.me.us
(Bureau of Insurance)
William H. Laubenstein, Esq.
State of Maine
Department of the Attorney General
6 State House Station
Augusta, Maine 04333-0006
e-mail: bill.laubenstein@state.me.us
(Office of the Attorney General)
Gregory A. Brodek, Esq.
Duane, Morris & Heckscher, LLP
15 Columbia Street, 4th Floor
Bangor, Maine 04401-6355
e-mail: gabrodek@duanemorris.com
(Maine Health Alliance)
Joseph P. Ditre, Esq.
Consumer Health Law Program
One Weston Court, Level One
P.O. Box 2490
Augusta, Maine 04338-2490
e-mail: jditre@mainecahc.org
(Consumers for Affordable Health Care Foundation/Coalition)
Michele M. Garvin, Esq.
Ropes & Gray
One International Place
Boston, Massachusetts 02110-2624
e-mail: Mgarvin@Ropesgray.com
(Central Maine Healthcare Corporation; Central Maine Partners Health Plan)
Robert I. Goldman
Maine Council of Senior Citizens
27 Bowery Beach Road
Cape Elizabeth, Maine 04107
e-mail: Rgoldma1@maine.rr.com
(Maine Council of Senior Citizens)
Bonnie Post
Executive Director of the Maine Ambulatory Care Coalition
P.O. Box 390
Manchester, Maine 04351
e-mail: bdpmacc@mint.net
(Sacopee Valley Health Center, Regional Medical Center at Lubec, Eastport Health Care,
Inc., and the Maine Ambulatory Care Coalition)
John Dieffenbacher-Krall
Executive Director
Maine People’s Alliance
192 State Street
Portland, Maine 04101
e-mail: MPA@gwi.net
(Maine People’s Alliance)
Gordon H. Smith, Esq.
Maine Medical Association
30 Association Drive
P.O. Box 190
Manchester, Maine 04351
e-mail: gsmith@ctel.net
(Thomas D. Hayward, M.D.,
Maroulla S. Gleaton, M.D.,
And the Maine Medical Association)
Donald E. Quigley, Esq.
General Counsel
465 Congress Street, Suite 600
Portland, Maine 04101-3537
e-mail: quigld@mail.mmc.org
(Maine Medical Center)
Sandra L. Parker, Esq.
John Doyle, Jr., Esq.
Attorneys for MHA, Inc.
150 Capitol Street
Augusta, Maine 04330
e-mail: sparker@themha.org
jdoyle@preti.com
(MHA, Inc.)
Kellie P. Miller, M.S.
Executive Director
Maine Osteopathic Association
693 Western Avenue
Manchester, Maine 04351
e-mail: meosteo@mint.net
(Maine Osteopathic Association)
DATED: March 10, 2000
_____________________________
James B. Zimpritch, Esq.
Jeffrey M. White, Esq.
Catherine R. Connors, Esq.
PIERCE ATWOOD
One Monument Square
Portland, Maine 04101
(207) 791-1100
Attorneys for Anthem Insurance Companies, Inc
