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> Document 636 : INS 99-14 : Hearing Decision
STATE OF MAINE
March 28, 2000
Q. Please state you name and your position with Anthem. A. My name is James Parker and I am Vice President of Public Affairs for Anthem Insurance Company, Inc. In this capacity, I have worked closely over the last nine months with local representatives of Associated Hospital Services of Maine, d/b/a Blue Cross and Blue Shield of Maine ("BCBSME"), and it has been my pleasure to discuss matters concerning Anthem, and the proposed transaction and its effects in Maine, with my colleagues at BCBSME, and with many of the residents of Maine, including members of the public, policyholders and those in the Maine medical and health care communities. Q. What matters will you address in your testimony? A. I will focus my comments on Anthem’s commitment to continuing good corporate citizenship in Maine in the tradition of BCBSME, as well as Anthem’s commitments relating to post closing employment levels. I will also provide information concerning Anthem’s activities, and awards and recognition received by it, which confirm its commitment to its stated corporate mission of improving the health of the people it serves by promoting healthful life styles for our members and the communities we serve. Q. What is Anthem’s approach to community involvement, and what specific commitments has it made to BCBSME concerning continued participation in charitable matters? A. Anthem is committed to continuing the strong record of community involvement established by BCBSME in Maine. This commitment is reflected in part in Section 5.15 of the Asset Purchase Agreement in which Anthem has agreed that for the two years after the closing, Anthem Health Plans of Maine will make corporate civic contributions, at an annual level at least equivalent to the average of BCBSME’s contributions over the preceding two years, but not less than $500,000 per year, to worthy organizations. Local management of Anthem Health Plans of Maine will determine the organizations which will receive support. In addition to this, we anticipate that many Anthem Health Plans employees would offer time and talent on a voluntary basis to assist worthwhile programs and organizations, just as many of the employees who are currently employed by BCBSME do. Q. What will be Anthem’s approach to providing coverage for the health care needs of policyholders in rural areas in Maine ? A. We recognize the need to provide adequate provider network coverage in our intended Maine operations, including in rural areas, and given our operations in other states with significant rural populations, we have experience in meeting the needs of rural policyholders. We understand BCBSME’s history of working to develop strong relationships with professional and other providers in order to ensure access of its policyholders to essential health care services. As noted in our filings and in other testimony, Anthem intends to assume BCBSME’s contracts with current providers, and thus will inherit its provider network, including the parts of the network which currently serve rural populations in Maine. After the closing, we will be working with existing BCBSME employees to maintain the adequacy of the provider network for our rural policyholders. Anthem also intends, of course, to comply with any statutes and regulations applicable to it that address network access. Q. What plans does Anthem have to provide for local input and participation in connection with the business of Anthem Health Plans of Maine? A. Anthem is committed to the establishment of an active, participatory local advisory board comprised of Maine residents and members. In Section 5.11(b) of the Asset Purchase Agreement, Anthem has agreed that Anthem Health Plans of Maine, as promptly as practicable after the closing, will establish the advisory board composed entirely of Maine residents. The initial board will consist of not more than nine members who are either (i) members of the board of directors of BCBSME, who are designated by BCBSME and/or (ii) members designated by BCBSME’s board of directors who are mutually acceptable to BCBSME and Anthem. The draft charter of the local advisory board, to be known as the Maine Advisory Counsel, has been previously filed with the Bureau, and is Applicants’ Exhibit 73. Anthem has also agreed in Section 5.11(b) that, if Anthem establishes a regional advisory board or other board whose responsibility includes Maine, it will include a proportionate number of Maine residents on the board. Finally, Anthem has agreed in Section 5.11 (a) of the Asset Purchase Agreement, to use its reasonable best efforts to cause an acceptable Maine candidate designated by the current BCBSME Board, and acceptable to Anthem, to be elected or appointed to Anthem Health Plans of Maine’s Board of Directors for a term of not less than two years, as promptly as practicable after the closing. Q. Would you describe the commitments Anthem has made in the Asset Purchase Agreement concerning facilities and employment levels in Maine after the purchase? A. Anthem recognizes and respects the significant value of the existing employees of BCBSME and their experience and expertise in the health care business, as well as their understanding of the health care needs of Maine citizens. Their assistance is critical in ensuring continuing and superior service to customers and providers. We also recognize the importance generally of employment of Maine residents and the concerns of some regarding the impact of the proposed acquisition. Several provisions of the Asset Purchase Agreement address these matters. First, Section 6.01 of the Asset Purchase Agreement provides that Anthem Health Plans of Maine will offer employment to all individuals employed prior to the closing by BCBSME. Also, in Section 5.12 of the Asset Purchase Agreement, Anthem has committed to maintaining a significant employment presence within Maine on an ongoing basis. This is consistent with our operating philosophy that many of the important sales, marketing, customer service, benefit design, underwriting, provider network and medical management functions should be local and based close to the customer. More specifically, Anthem has agreed that, within three years of the closing of the transaction, the employment levels of Anthem Health Plans of Maine will be substantially proportionate to employment levels in other geographic areas in which Anthem operates, based on levels of membership, subject to fluctuations required to respond to general business conditions or changes in Maine laws or regulations. As with any soundly run business, we will continue to monitor trends in the economy, the health care industry and Maine which influence our health insurance business. As part of this process, we will work continually to ensure that our levels of membership, revenue and employment align in cost-effective ways. Q. Has Anthem made any commitments concerning the NCQA accreditation of the BCBSME business after the closing? A. Yes. The company has agreed in section 5.17 of the Asset Purchase Agreement to use reasonable efforts to maintain the level of NCQA accreditation achieved by BCBSME prior to the closing for a period of at least two years following the closing date. Q. Can you comment on some of the accreditations, quality improvement programs, clinical achievements, and recognition received by Anthem? A. Anthem has received considerable recognition and initiated a number of programs in these areas. I have summarized some of the more significant ones in the summary which appears as Exhibit A to this testimony, which is attached hereto and incorporated in this testimony. Q. Does this conclude your testimony? A. Yes. CERTIFICATE OF SERVICE The undersigned hereby certifies that on March 28, 2000, a copy of Anthem’s Prefiled Testimony of James Parker was served by electronic mail, overnight mail, or via 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) 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) 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 28, 2000 _____________________________ James B. Zimpritch, Esq. Jeffrey M. White, Esq. Catherine R. Connors, Esq. PIERCE ATWOOD Portland, Maine 04101 (207) 791-1100 Attorneys for Anthem Insurance Companies, Inc. Last Updated: August 22, 2012 |
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