Missouri Senate committee to hear testimony in MU Health Care and Anthem contract dispute Monday
Marie Moyer
COLUMBIA, Mo. (KMIZ)
The Missouri Senate’s Insurance and Banking Committee is set to hear testimony from University of Missouri Health Care and Anthem Blue Cross Blue Shield on Monday, in an effort to break the stalemate in insurance negotiations.
The hearing was scheduled earlier this month by Sen. Sandy Crawford (R-Buffalo) at the suggestion of Senate President Pro Tem Cindy O’Laughlin (R-Shelbina).
Since April 1, over 90,000 patients previously covered by Anthem have been in limbo, with many struggling to pay for care out-of-network.
The negotiations hit a standstill around this time when MU Health Care asked for an 11-13% increase to cover inflation costs, while Anthem offered a 1-2% increase. MU Health Care reported that they lowered their proposal, but Anthem claimed their offer was not doable.
Since the disagreement, MU Health Care released the financial report for the second half of its previous fiscal year, reporting a profit of over $50 million in operations. MU Health Care was covered by Anthem for the majority of the report, only being off-contract for a month.
Both MU Health Care and Anthem have been called to testify on Monday, as well as the Missouri Department of Commerce and Insurance and the Missouri Consolidated Health Care Plan.
In a statement Thursday, University of Missouri Board of Curators Chair Todd Graves said that MU Health Care plans to stand up to Anthem.
“As Curators, we understand the importance of these negotiations for ensuring the long-term sustainability of our health system and preserving local access to care for rural Missourians,” Graves said.
In a statement Sunday, Anthem claimed to have offered MU multiple offers, including annual rate increases above the Consumer Price Index which MU Health Care declined.
“We have a strong, fact-based story to tell about our efforts to protect affordability, support our members, and reach a fair agreement,” an Anthem spokesperson said. “MU Health Care has made future meetings conditional on Anthem first meeting their terms.”
The hearing will begin at 1 p.m. in the Senate Lounge.