Community Activists Call for Blue Cross Blue Shield to Auction Its Assets

Strategic Insights -

Community activists are pushing back against Blue Cross Blue Shield of Colorado's planned sale to Anthem Inc., alleging a lack of transparency and self-dealing in the deal. The sale, announced in March, has been criticized by some for being shrouded in secrecy and potentially benefiting Blue Cross at the expense of its customers. Activists are now calling on the insurer's board to hold an open, unfettered auction of the company's assets, citing similarities with the collapse of Ascent Entertainment Group Inc.'s deal. Blue Cross officials maintain that they held an open auction before selecting Anthem, but activists argue that a more formal process would yield a better outcome for consumers.

Key Takeaways:

  • Community activists, including Catholic Charities and the Health Care Conversion Project, are pushing for Blue Cross Blue Shield to hold an open auction of its assets, citing concerns over transparency and self-dealing in the proposed sale to Anthem Inc.
  • The activists' demands come after the sale was announced in March, and follows a similar collapse of a deal involving Ascent Entertainment Group Inc.
  • Blue Cross officials claim to have held an open auction before selecting Anthem as the buyer, but activists argue that a more formal process would yield better results.
  • The proposed sale, worth around $155 million, would result in at least $140 million being donated to a charitable foundation to address unmet healthcare needs in Colorado.
  • The Blue Cross deal is set to be scrutinized by Colorado Insurance Commissioner William Kirven and Attorney General Ken Salazar, with public hearings planned to ensure the process is fair.
  • Activists may consider filing a lawsuit to stop the sale if they believe it was unfair.

Statistics:

  • The proposed sale of Blue Cross Blue Shield to Anthem Inc. is valued at around $155 million.
  • At least $140 million of the purchase price is guaranteed to be donated to a charitable foundation to serve unmet healthcare needs in Colorado.
  • A formal 30-day bidding process was requested by Colorado Attorney General Ken Salazar, but refused by Blue Cross officials.
  • The Blue Cross sale will be scrutinized by Colorado Insurance Commissioner William Kirven and Attorney General Ken Salazar, with public hearings to ensure the process is fair.

Sources:

  • Conklin, M. News Staff Writer. Community activists are calling for Blue Cross Blue Shield of Colorado to follow in the footsteps of Ascent Entertainment Group Inc. and auction its assets. (Source: The Denver Post)
  • Conklin, M. News Staff Writer. Activists push for public auction of Blue Cross assets. (Source: The Denver Post)
  • Blue Cross Blue Shield of Colorado press release. Anthem to Buy Blue Cross Blue Shield of Colorado for $155 Million. (Source: Blue Cross Blue Shield of Colorado)
  • Catholic Charities press release. Community Organizations Call for Fair Deal in Blue Cross Sale. (Source: Catholic Charities)