Anthem says talks stay stalled with MU Health Care as both sides post big financial gains
Mitchell Kaminski
Editor’s note: Additional financial information about Anthem was added on June 25, 2025, as was information from an updated statement provided by MU Health Care. A paragraph describing the timeframe in which operating gains occurred for MU Health Care has been corrected.
COLUMBIA, Mo. (KMIZ)
Anthem Blue Cross Blue Shield says negotiations with MU Health Care are stalled.
This comes as MU Health Care posted more than $50 million in operating gains from July 1, 2024-April 30, 2025 which includes a full month of Anthem going out of network.
According to a filing by Anthem’s parent company Elevance, health benefits – which is made up of individual, employer group risk-based, employer group fee-based, BlueCard, Medicare, Medicaid and Federal Employee Program businesses – resulted in operating gain of $2.2 billion for a three-month period ending on March 31.
The two sides failed to reach an agreement by the March 31 deadline, which took MU Health Care out of network for Anthem customers. In April, MU Health Care told ABC 17 News that the two sides were still engaged in discussions, but added that it began negotiations wanting an increase of 11-13% over the next three years.
MU Health Care claimed that Anthem only offered a 1-2% increase, which was not enough to cover inflationary costs of supplies, labor, technology and pharmaceuticals. MU Health Care claimed it lowered its rate proposal later in the month.
However, Anthem claimed in April that its proposed rate increases exceeded the Consumer Price Index for each year of a three-year agreement.
“Despite our repeated efforts to resume good-faith negotiations, MU Health Care has made future meetings conditional on Anthem first meeting their terms— an approach that prevents meaningful dialogue,” an Anthem spokesperson told ABC 17 News in an email on Tuesday. “Anthem recently extended a proposal to MU Health Care to continue continuity of care for our most vulnerable members through December 31, 2025. MU Health Care declined that offer. Anthem has offered annual rate increases above the Consumer Price Index (CPI), along with the opportunity to earn more through quality-based incentives. MU Health Care has rejected these offers. We want MU Health Care in our network—but not at a rate Missourians can’t afford.”
On Tuesday, a MU Healthcare spokesman said that a 1-2% increase is all they have been offered in almost a year.
“MU Health Care sent its initial proposal to Anthem in July of 2024. While MU Health Care’s negotiating position and expectations have changed over the last 10 months, Anthem’s has not,” MU Health spokesman Eric Maze said in an email.
An updated statement from MU Health Care sent on Wednesday evening reiterated “In communication from Anthem around their most recently restated offer, Anthem leadership indicated that they were disengaging from discussions with MU Health Care unless our position changed.”
The updated statement from MU Health Care also claims that Anthem’s continuity of care extension was “not viable,” and that Anthem “bears the responsibility for continuity of care decisions.” MU Health Care alleges Anthem is “now attempting to shift blame and avoid accountability.”
MU Health Care reported a $53.5 million operating gain from July through April. Numbers shared by MU Health Care to the UM System’s Board of Curators showed its Columbia operation accounted for $50.3 million of that, with Jefferson City Capital Region Hospital bringing in $3.2 million.
In total, MU Health generated $1.599 billion compared to $1.546 billion in expenses. This exceeded the $33.6 billion forecasted in net operating gains during that period.
MU Health Care still posted financial gains, despite exceeding its overall budget in several key areas. Salaries and benefits came in about $3.6 million over budget, supplies were $8.7 million higher than expected and hospital drug costs exceeded projections by $21.7 million.
However, the numbers varied across facilities. University Hospital stayed under budget—saving $1.7 million on salaries and benefits, $7.2 million on supplies, and $5.9 million on hospital drugs. Meanwhile, Capital Region Hospital overspent by $5.3 million on salaries and benefits, $1.4 million on supplies, $1.8 million on hospital drugs and $15.1 million on other expenses.
Anthem’s total operating gain is down from the same period of the first three months in 2024, where it posted $2.3 billion. However, the operating revenue during the 2025 period was reported at $41.4 billion, compared to the first quarter of 2024 at $37.3 billion.