Georgia's approval clears way for largest health insurance merger

<p>After landing a $126.5 million pledge to improve rural health care in Georgia, the state gave its approval Tuesday to a corporate merger that will create the nation's largest health insurance company.</p><p>With Georgia's approval _ the last state to sign off on the deal _ California-based WellPoint Health Networks, Inc. and Indiana-based Anthem, Inc. are expected to soon close on their merger.</p><p>Georgia Insurance Commissioner John Oxendine said he secured the money, which will be spent on a rural health initiative in the state over 20 years, through merger negotiations with both companies. WellPoint owns BlueCross BlueShield of Georgia.</p><p>Officials at Anthem did not immediately return telephone calls seeking comment Tuesday. WellPoint officials referred inquiries to Anthem.</p><p>To win the state's approval, Anthem agreed to finance telemedicine centers at 36 rural Georgia hospitals, clinics and the state's four teaching hospitals and to cover telemedicine procedures in its insurance benefits, Oxendine said. Through telemedicine, a patient in a rural part of the state can be diagnosed by a specialist in a larger hospital via teleconferencing technology.</p><p>"What we're trying to do is equalize the quality of health care available to citizens," Oxendine said. "People should not be required to have lesser health care available to them just because they happen to live in a rural area."</p><p>The insurer also agreed to help rural Georgia health centers expand, renovate and upgrade equipment by purchasing their bonds and other debt instruments over the next 20 years, Oxendine said.</p><p>Anthem also promised that the merger would not lead to higher insuurance premiums for Georgia BlueCross policyholders, Oxendine said.</p><p>Earlier this year, California's insurance regulator dropped his objections to the planned merger after the companies agreed to pay $600 million to help cover the costs of treating that state's uninsured residents.</p><p>In all, some 28 million people in 13 states would be covered by a combined Anthem-WellPoint, with about a quarter of those in California.</p><p>---</p><p>On The Net</p><p>HASH(0x2865d04)</p><p>HASH(0x2864bd0)</p><p>HASH(0x2864cb4)</p><p>HASH(0x2864d98)</p>