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E N Q U I R E R   L O C A L   N E W S   C O V E R A G E
Warren delays Anthem's tax break

Friday, July 31, 1998

BY KYM LIEBLER
The Cincinnati Enquirer

LEBANON -- A round of "I'll scratch your back if you'll scratch mine" involving a health insurance giant and hundreds of senior citizens is unfolding in Warren County.

Anthem Blue Cross & Blue Shield officials want a modest change in a tax abatement agreement for its Deerfield Township offices. County commissioners say they'll grant it -- as long as Anthem addresses the concerns of 800 senior citizens from the northern part of the county who will be dropped from the company's Medicare HMO services Jan. 1.

"We've got senior citizens who are really being stepped on by Anthem," said C. Michael Kilburn, president of the board of commissioners. "If they're getting something from us, I'm going to require them to do things that are favorable to the people of this town who are pulling the wagon."

In May, Anthem announced plans to drop about 20,000 Ohioans from its Medicare HMO plans, citing low federal reimbursement rates in rural areas. Medicare HMOs have become a popular alternative to traditional Medicare, the federal health plan for elderly and disabled people.

Gov. George Voinovich and U.S. Rep. Rob Portman, R-Terrace Park, have blasted the decision, which affects senior citizens in 19 counties and parts of three others. Included are northern Warren, Brown, Clinton and Highland counties. Rural residents outside Columbus, Dayton and Youngstown also will lose their coverage.

Franklin widow Hattie Pursley, 72, is one of the Warren County seniors searching for an alternative, affordable medical plan that will cover the $3,000-a-year cost of her prescription pills. "Everyone is really upset about the whole thing," she said. "I thought I'd probably do well with the Anthem policy as a supplement to Medicare. I'm just really disappointed. I can't pay full price for my medications."

Karen Garrett, Warren County's economic development director, said Anthem's request on the abatement deal involves a change of ownership, in name only, of the real estate where the offices are located.

"Anytime there's a change of name on anything, all names have to be listed so we make sure the tax abatement goes to the right place," Mrs. Garrett said. "Generally these things go through pretty quick."

What commissioners want from Anthem before they sign the company's tax deal amendment is unclear.

"We at least want answers," Commissioner Larry Crisenbery said. "Why penalize people just because they live in rural areas when these people paid the same premiums everyone else did?"

Mr. Kilburn stopped short of saying Anthem must retain Warren County seniors in its Medicare HMO plan before he approves its request. But he said he is using his power as an elected official to force Anthem to address seniors' concerns.

"They want something from us; there's something out there we should probably ask from them," he said. "Is it blackmail? I call it good management."

He and fellow commissioners said they have received dozens of phone calls from upset senior citizens who live in Springboro, Franklin, Carlisle and Waynesville.

Kendra Overbeck, spokeswoman for Anthem, said July 1 was the deadline for health care providers to submit changes to the Health Care Financing Administration, which oversees federal health care plans.

But Mrs. Overbeck and Lynne Gross, vice president of government products, said Anthem will work with senior citizens to find alternative health plans.

"We will meet with them and do what it takes to provide them with information they can pass on to the seniors," Mrs. Gross said. "We take these issues very seriously."

Anthem's request for a name change on its 1994 tax abatement agreement for its offices is on hold.

Commissioners plan to revisit Anthem's request Tuesday, "pending a favorable resolution to the senior citizens' concerns," Mr. Kilburn said.



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