Governor Kathleen Sebelius Reaffirms Her Decision to Deny the Takeover of Blue Cross and Blue Shield of Kansas

With arguments in the Blue Cross and Blue Shield of Kansas case being presented today in the Kansas Supreme Court, Governor Kathleen Sebelius reaffirms the decision she made last February to deny the proposed takeover of Blue Cross Blue Shield of Kansas by Anthem of Indiana. Over a year later, Governor Sebelius stands by her decision and her statement is as follows:  "As insurance commissioner it was my responsibility to create a climate that allowed the insurance industry to prosper, but also to guarantee that prosperity served the People of Kansas. Guided by those principles, I decided last year to deny the takeover of Blue Cross and Blue Shield of Kansas by Anthem of Indiana.

"I denied the takeover because it would have cost Kansas businesses, small employers and families millions of dollars in additional health insurance premiums. After gathering all the facts, it was clear that Anthem of Indiana was an aggressive, for-profit, out-of-state holding company with a corporate goal of beating its competitors at making a profit. That's a worthy objective-the essence of free enterprise. But in this case, Anthem of Indiana's need for big profits would have subjected the people of Kansas to millions of dollars in additional health insurance premiums.

"Anthem of Indiana would have forced premium increases on some of Kansas' most vulnerable consumers-businesses, individuals and small employers. These are challenging times and it was my responsibility to protect them from an even greater burden.

"The takeover by Anthem of Indiana would have:

Forced Kansans to pay million of dollars of additional health insurance premiums;

Drained Blue Cross's reserves;

Scattered its expertise across the Anthem holding company; and

Linked Kansas Blue Cross and Blue Shield with Anthem of Indiana's worst performing region.

"Approving this takeover was not in the best interest of the people of Kansas, so I said no."

I protected the people of Kansas' best interests as Insurance Commissioner and I have carried that same commitment, that same promise to the Governor's office. I am still committed to finding ways to keep healthcare costs down and increase accessibility to care for those who need it. With unemployment rates climbing, that translates into more Kansas families who are being forced to seek coverage that is difficult to afford, or worse, to go without health insurance. As Governor, I will continue to work on finding affordable coverage for all Kansans and working with health care providers and business leaders to tackle the issue of rising health costs.

"And, I hope that the Kansas Supreme Court will render a decision that truly helps and puts the people of Kansas before anything else."