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Mercy to end contracts with Anthem Blue Cross Blue Shield unless an agreement can be reached

The healthcare system said it has provided written notice to the managed care company to end contracts.

Mercy has provided written notice to Anthem Blue Cross Blue Shield to end its contracts with the managed care company in Missouri after what it said were months of negotiation. The healthcare system said in a news release that one of their primary concerns is “the burdensome red tape that makes it increasingly difficult for patients to navigate Anthem’s system and creates a burden and barrier for patients to receive care when it’s medically necessary.”

The contracts include all commercial, Medicare Advantage, Affordable Care Act marketplace, managed Medicaid plans and HealthLink.

Mercy officials claimed managed care companies are “reaping enormous profits” as the cost for care rises. It said Elevance Health, the corporate name for Anthem, reported a 24.12% increase in its year-over-year net income, a number that was verified by KSMU.

In an email to KSMU, Anthem Blue Cross Blue Shield Spokesperson Emily Snook accused Mercy of wanting to “increase the prices they charge our members and employers by five times the current inflation rate.” She said Mercy has also demanded contract language “that would keep specialty medications unnecessarily expensive when lower cost options are available.” She said they continue working hard to reach an agreement and that “Anthem has offered reasonable payment increases in excess of the consumer price index for each of the next two years.” They're keeping enrollees updated here.

Mercy said it will remain in network for medical services with Anthem through the end of the year but will move out of network with the company on January 1st unless a new agreement is reached.

The other major healthcare provider in Springfield, CoxHealth, partners with Anthem Blue Cross Blue Shield’s Medicare Advantage Plans only, according to its website.

Michele Skalicky has worked at KSMU since the station occupied the old white house at National and Grand. She enjoys working on both the announcing side and in news and has been the recipient of statewide and national awards for news reporting. She likes to tell stories that make a difference. Michele enjoys outdoor activities, including hiking, camping and leisurely kayaking.