Mercy, Anthem reach coverage deal, avoid dropping thousands from network - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Health/Employee Benefits News
Newswires RSS Get our newsletter
Order Prints
December 7, 2024 Newswires
Share
Share
Post
Email

Mercy, Anthem reach coverage deal, avoid dropping thousands from network

Sarah FentemKBIA - 91.3 FM

Chesterfield-based health system Mercy will cover Anthem patients in Missouri in 2025. The two companies on Wednesday announced that they reached a deal months after the health system threatened to stop accepting Missouri patients covered by the health insurer starting Jan. 1.

Under the new contract, Anthem customers who have plans through their employer, Medicare Advantage or the Affordable Care Act marketplace will maintain their coverage for care at Mercy, which operates dozens of hospitals and hundreds of outpatient clinics in Missouri, Arkansas, Kansas and other states.

Health systems and insurers regularly negotiate contracts that set the amount of money insurers pay hospitals and other providers for surgeries, checkups and other services. The details of such negotiations are usually private, and the two companies did not disclose more information about the contract.

Representatives from Anthem and Mercy declined requests for interviews.

Anthem officials in September claimed Mercy was asking for too much money to cover procedures. Mercy officials claimed Anthem was putting onerous requirements on providers, such as requiring the insurer to authorize certain care.

Mercy officials said then that dropping Anthem-covered patients could have affected a half-million people in the state who receive care at the health system's locations.

Insurance industry analysts say health systems with large patient pools or with many locations can leverage that size to negotiate for higher reimbursement rates. Similarly, large insurers can leverage their huge patient networks to pay less expensive reimbursements to health systems.

As health systems have grown and mergers among hospital companies have become more common, hospitals have more leverage to negotiate rates with insurers, policy analysts say.

Many of Anthem's patients are enrolled through employer benefit plans, said Laurel Pickering, president and CEO of the St. Louis Area Business Health Coalition, a nonprofit that represents Anheuser-Busch, Boeing, school districts and other employers.

Companies often enroll employees in benefits based on a calendar year, with new plans starting in January, she said.

"Decisions need to be made by late summer and early fall, and this dispute kicked off in September," Pickering said. "It was just too late to make any changes ….Employers have been worried about this and they are definitely breathing a sigh of relief."

Pickering said the public had been more aware of the negotiations between the companies than in the past because Mercy had sent out a notice to patients earlier in the year warning them of the potential fallout with Anthem.

"Patients and employees got engaged in a way I have not seen before," she said. "A new element is the voice of the patient and the voice of the employee."

Patients have been worried and unsure if they'd have coverage in the new year, said Joe Bottani of St. Louis-based Arch Brokerage, which helps individuals and employers choose health insurance plans.

"There really was a lot of frustration and confusion, and all for naught at this point," he said. "People had to make decisions and really kind of think about how important the doctors were and how much they were willing to, you know, bend on insurance."

Bottani said he had seen many patients, particularly ones who bought coverage through the federal health insurance marketplace, drop Anthem and move to different insurers as a precaution.

"I think the patients are probably the ones that lost the most here," he said.

This story has been updated to include comments from representatives from companies that work with Anthem customers.

Copyright 2024 St. Louis Public Radio

Older

Links to selected items focusing on govenmental operations posted on the Internet during the week ending December 6, 2024

Newer

Another record week for stocks

Advisor News

  • Financial FOMO is quietly straining relationships
  • GDP growth to rebound in 2027-2029; markets to see more volatility in 2026
  • Health-related costs are the greatest threat to retirement security
  • Social Security literacy is crucial for advisors
  • The $25T market opportunity in mid-market and mass-affluent households
More Advisor News

Annuity News

  • MetLife to Announce First Quarter 2026 Results
  • CT commissioner: 70% of policyholders covered in PHL liquidation plan
  • ‘I get confused:’ Regulators ponder increasing illustration complexities
  • Three ways the Corebridge/Equitable merger could shake up the annuity market
  • Corebridge, Equitable merge to create potential new annuity sales king
More Annuity News

Health/Employee Benefits News

  • Virginia insurance regulators order rate cuts for several Aflac policies
  • State legislators continue to question HPH-HMSA deal
  • Shares of Health Insurers Rally After CMS Bumps Up 2027 Rates
  • Virginia insurance regulators order Aflac rate cuts
  • Providers wait for hundreds of millions in delayed Medicaid payments
More Health/Employee Benefits News

Life Insurance News

  • Virginia insurance regulators order rate cuts for several Aflac policies
  • AM Best Maintains Under Review With Positive Implications Status for The Fortegra Group, Inc.’s Insurance Subsidiaries
  • Life insurance application activity sees record-breaking Q1
  • Virginia insurance regulators order Aflac rate cuts
  • ATTORNEY GENERAL MAYES ANNOUNCES PRISON SENTENCES IN FRAUDULENT LIFE INSURANCE SCHEME TARGETING VULNERABLE ARIZONANS
More Life Insurance News

- Presented By -

Top Read Stories

More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Protectors Vegas Arrives Nov 9th - 11th
1,000+ attendees. 150+ speakers. Join the largest event in life & annuities this November.

An FIA Cap That Stays Locked
CapLock™ from Oceanview locks the cap at issue for 5 or 7 years. No resets. Just clarity.

Aim higher with Ascend annuities
Fixed, fixed-indexed, registered index-linked and advisory annuities to help you go above and beyond

Unlock the Future of Index-Linked Solutions
Join industry leaders shaping next-gen index strategies, distribution, and innovation.

Leveraging Underwriting Innovations
See how Pacific Life’s approach to life insurance underwriting can give you a competitive edge.

Press Releases

  • RFP #T01525
  • RFP #T01725
  • Insurate expands workers’ comp into: CA, FL, LA, NC, NJ, PA, VA
  • LifeSecure Insurance Company Announces Retirement of Brian Vestergaard, Additions to Executive Leadership
  • RFP #T02226
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet