Anthem claims ‘initial progress has been made’ with MU Health Care following Senate committee hearing Monday
Marie Moyer
JEFFERSON CITY, Mo. (KMIZ)
Monday’s Missouri Senate committee hearing brought University of Missouri Health Care and Anthem to the table, but not to a solution, as both groups walked away without a clear plan to cover the health care of thousands of Mid-Missourians.
In testimony, both MU Health Care and Anthem claimed to have made several proposals since 2024, which both parties have routinely declined.
MU Health Care’s most recent proposal has been 9%, 9%, and 8% increases over three years. Anthem recently offered a plan that featured performance benefits and pay raises over inflation. MU Health Care argued that Anthem pays them less than other local insurers and academic medical centers outside Missouri.
“Anthem rates are 10% to 20% lower than other people pay us today,” MU Health Care Chief Executive Officer Ric Ransom said. “The rates that Anthem pays, other academic health systems, other places like us in the Midwest and throughout the country, it’s 30% more.”
Rich Novack, who represented Anthem during the hearing, argued that Anthem couldn’t afford the MU’s percentage increases since Anthem administration costs have only been increasing by less than 2.5% per year. Novack also made two informal offers to MU Health Care mid-way during his testimony.
The first, a three-year contract with annual increases of 3.3%. The second offer would match Anthem’s current partnership with the University of Kentucky, an academic medical center like MU Healthcare.
“University of Kentucky, I know a lot about that one,” Novack said. “I’ll take that deal top to bottom, no alterations, no amendments. I’ll take that deal, we can sign it this afternoon and everybody goes home happy.”
In a statement from MU Health Care spokesperson Eric Maze, it is too early to respond to any offers made during the hearing without a written proposal.
“MU Health Care is simply requesting rates on par with those paid by other managed care companies in the region and comparable to the rates Anthem pays other academic health systems,” Maze said. “Without fair payment from Anthem, MU Health Care, the region’s only academic health system and one of only two safety net providers in the state, is being forced to fight for its future while defending the health of an entire region.”
In a statement from an Anthem spokesperson, they claimed the hearing was productive in negotiations.
“Following the hearing, Anthem met with MU Health Care leadership to continue discussions,” the Anthem spokesperson said in the statement. “We’re encouraged that some initial progress has been made and remain committed to working toward a solution that restores in-network access while protecting affordability for the Missourians we serve.”