The sale of CareFirst BlueCross BlueShield is unlikely to produce major positive or negative impacts on consumers or the state generally, according to five independent consultants' reports released yesterday.
The sheaf of reports was ordered by Insurance Commissioner Steven B. Larsen, who is to rule next month on whether the deal is in the public interest. CareFirst wants to convert to for-profit operation and be sold to WellPoint Health Networks Inc. for $1.37 billion.
WellPoint and CareFirst have similar track records on quality and service, one report said. Two other reports offered opposite conclusions on whether the deal would increase prices.
Yet another consultant said a foundation backed by the sale money could be useful, but its contribution would be small relative to the total health costs and needs in the state.
Finally, a consultant said CareFirst's board acted properly in making the decision to sell, but in choosing WellPoint improperly considered factors other than price, including headquarters location and jobs for current CareFirst executives.
CareFirst filed rebuttals to several reports, challenging specific figures and projections more than overall conclusions.
Here's a look at the reports:
Impact on consumers and health care providers - The Delmarva Foundation, a health quality consulting organization in Easton, concluded that "changes in quality of care and services are likely to be minimal, if the conversion proceeds."
Delmarva compared CareFirst's and WellPoint's policies in such areas as approving care, and reviewed state report cards and other indexes of health plan performance. It generally found the WellPoint and CareFirst plans earning similar marks.
"The results of this review indicate few differences between WellPoint Health Networks Inc. as a `for-profit' health care company and CareFirst Inc., a `not-for-profit' company," Delmarva wrote. "The immediate impact of the proposed conversion on Maryland stakeholders would be neutral to moderately negative."
The "brunt of the negative changes," the report said, would likely be felt by doctors and hospitals, given WellPoint's track record in California of hard-nosed bargaining over rates.
In a rebuttal filed by CareFirst, Joseph Marabito, a partner in the consulting firm Accenture, argued: "If lower physician reimbursement translates to lower premiums, then health insurance would cost less than it otherwise would have - a positive impact on consumers."
