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State's largest health insurer says proposed UNC-Carolinas merger will drive up costs for patients

Blue Cross and Blue Shield of North Carolina, the state's largest health insurer, released a letter the executives of two healthcare giants in North Carolina, stating the insurer "cannot support [the] proposed combination," The News & Observer reports.

BCBS North Carolina President and CEO Patrick Conway, MD, sent a letter Wednesday to Charlotte-based Carolinas HealthCare System President and CEO Eugene Woods and William Roper, MD, CEO of Chapel Hill-based UNC Health Care. The health systems announced their intent to combine in mid-2017, but expect the confidential negotiations to conclude within the coming months.

In the letter, Dr. Conway noted BCBS North Carolina conducted "a thorough review of independent research," which showed consolidation generally drives up prices for consumers.

"Blue Cross NC cannot support your proposed combination. However, we are open to continued dialogue if you can demonstrate how this combination will lower costs and improve quality over the long-term," Dr. Conway wrote in the letter.

Dr. Conway's remarks come on the heels of other insinuations the proposed transaction may not prove beneficial to the community. A UNC board of governors member, who The News & Observer reports also works as lobbyist for Blue Cross and Raleigh, N.C.-based WakeMed Health & Hospitals, questioned the legality of the institutions' clandestine negotiations.

The UNC board of governors formed a special committee to review the proposed deal to ensure the state's assets, including the Chapel Hill-based UNC School of Medicine, will not be at risk, the report states.

The proposed combination is also under review by the state attorney general's office, and may also be reviewed by the Federal Trade Commission.

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