{"id":120,"date":"2020-03-11T15:29:20","date_gmt":"2020-03-11T15:29:20","guid":{"rendered":"https:\/\/sites.sandiego.edu\/cpil-blog\/?p=120"},"modified":"2020-03-11T20:31:53","modified_gmt":"2020-03-11T20:31:53","slug":"department-of-managed-health-care-director-approves-anthem-inc-s-acquisition-of-beacon-health-options","status":"publish","type":"post","link":"https:\/\/sites.sandiego.edu\/cpil-blog\/2020\/03\/11\/department-of-managed-health-care-director-approves-anthem-inc-s-acquisition-of-beacon-health-options\/","title":{"rendered":"Department of Managed Health Care Director Approves Anthem, Inc.\u2019s Acquisition of Beacon Health Options"},"content":{"rendered":"<h3>By Taylor C. Brewer<\/h3>\n<p>On February 5th, 2020, during a <a href=\"https:\/\/perma.cc\/3QGC-WULE\">public meeting<\/a> of the Financial Solvency Standards Board, Director of the Department of Managed Health Care (DMHC) <a href=\"https:\/\/perma.cc\/5DY9-KWF4\">Shelley Rouillard<\/a> announced her approval of Anthem, Inc.\u2019s proposed acquisition of Beacon Health Options. The Department has new authority to review potential mergers involving health plans within DMHC\u2019s jurisdiction, and the Director has the discretion to disapprove a transaction if she believes it would substantially lessen competition, pursuant to <a href=\"https:\/\/leginfo.legislature.ca.gov\/faces\/billNavClient.xhtml?bill_id=201720180AB595\">AB 595 (Wood) (Chapter 292, Statutes of 2018)<\/a>.\u00a0 <em>[see <\/em><a href=\"https:\/\/digital.sandiego.edu\/cgi\/viewcontent.cgi?article=1380&amp;context=crlr\"><em>24:1 CRLR 33\u201334]<\/em><\/a> Anthem, Inc. <a href=\"https:\/\/perma.cc\/W6Z3-VV5D\">announced<\/a> its plan to acquire Beacon Health Options (Beacon), \u201cthe largest independently held behavioral health organization in the country,\u201d on June 6, 2019, stating its intent to expand its focus on behavioral health solutions as part of whole-person care.<\/p>\n<p>According to Ms. Rouillard\u2019s oral report at the February meeting, a Department analysis concluded that the proposed merger did not constitute a \u201cmajor transaction\u201d pursuant to AB 595, and thus her approval was made without need for an open public meeting or impact statement in accordance with the Bagley-Keene Open Meeting Act. The term \u201cmajor transaction\u201d is defined in section 1399.65 (g)(1) of the Health and Safety Code, and includes the following criteria: \u201c(A) Affects a significant number of enrollees; (B) Involves a material amount of assets; (C) Adversely affects either the subscribers or enrollees or the stability of the health care delivery system because of the entity\u2019s market position, including, but not limited to, the entity\u2019s market exit from a market segment or the entity\u2019s dominance of a market segment.\u201d<\/p>\n<p>While Director Rouillard did mention at the <a href=\"https:\/\/perma.cc\/R98V-ZDJK\">July<\/a> and <a href=\"https:\/\/perma.cc\/T2HK-LRMQ\">November<\/a> Financial Solvency Standards Board meetings that she was reviewing the merger, no public statement or order approving the merger has been issued at this writing, other than her announcement at the February meeting. \u00a0Pursuant to section 1399.65(b)(2) of the Health and Safety Code, if a member of the public requests it, the Director must make available to the public her determination that her approval did not require a public hearing.<\/p>\n<p>&nbsp;<\/p>\n<a class=\"synved-social-button synved-social-button-follow synved-social-size-32 synved-social-resolution-single synved-social-provider-facebook nolightbox\" data-provider=\"facebook\" target=\"_blank\" rel=\"nofollow\" title=\"Follow us on Facebook\" href=\"https:\/\/www.facebook.com\/CPILUSD\" style=\"font-size: 0px;width:32px;height:32px;margin:0;margin-bottom:5px;margin-right:5px\"><img loading=\"lazy\" decoding=\"async\" alt=\"Facebook\" title=\"Follow us on Facebook\" class=\"synved-share-image synved-social-image synved-social-image-follow\" width=\"32\" height=\"32\" style=\"display: inline;width:32px;height:32px;margin: 0;padding: 0;border: none;box-shadow: none\" src=\"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-content\/plugins\/social-media-feather\/synved-social\/addons\/extra-icons\/image\/social\/circle\/64x64\/facebook.png\" \/><\/a><a class=\"synved-social-button synved-social-button-follow synved-social-size-32 synved-social-resolution-single synved-social-provider-twitter nolightbox\" data-provider=\"twitter\" target=\"_blank\" rel=\"nofollow\" title=\"Follow us on Twitter\" href=\"https:\/\/twitter.com\/cpilusd\" style=\"font-size: 0px;width:32px;height:32px;margin:0;margin-bottom:5px\"><img loading=\"lazy\" decoding=\"async\" alt=\"twitter\" title=\"Follow us on Twitter\" class=\"synved-share-image synved-social-image synved-social-image-follow\" width=\"32\" height=\"32\" style=\"display: inline;width:32px;height:32px;margin: 0;padding: 0;border: none;box-shadow: none\" src=\"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-content\/plugins\/social-media-feather\/synved-social\/addons\/extra-icons\/image\/social\/circle\/64x64\/twitter.png\" \/><\/a>","protected":false},"excerpt":{"rendered":"<p>By Taylor C. Brewer On February 5th, 2020, during a public meeting of the Financial Solvency Standards Board, Director of the Department of Managed Health Care (DMHC) Shelley Rouillard announced her approval of Anthem, Inc.\u2019s proposed acquisition of Beacon Health <a class=\"more-link\" href=\"https:\/\/sites.sandiego.edu\/cpil-blog\/2020\/03\/11\/department-of-managed-health-care-director-approves-anthem-inc-s-acquisition-of-beacon-health-options\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1013,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[132906,132907],"tags":[133017,133016,133018,133015,132908,133012,133014,133013],"coauthors":[132864],"class_list":["post-120","post","type-post","status-publish","format-standard","hentry","category-department-of-managed-health-care","category-major-projects-department-of-managed-health-care","tag-ab595","tag-anthem","tag-bagley-keene","tag-beacon-health","tag-dmhc","tag-fssb","tag-merger","tag-shelly-rouillard"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Department of Managed Health Care Director Approves Anthem, Inc.\u2019s Acquisition of Beacon Health Options - Consumer Protection Policy Center - Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sites.sandiego.edu\/cpil-blog\/2020\/03\/11\/department-of-managed-health-care-director-approves-anthem-inc-s-acquisition-of-beacon-health-options\/\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:locale\" content=\"en_US\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:type\" content=\"article\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:title\" content=\"Department of Managed Health Care Director Approves Anthem, Inc.\u2019s Acquisition of Beacon Health Options - Consumer Protection Policy Center - Blog\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:description\" content=\"By Taylor C. Brewer On February 5th, 2020, during a public meeting of the Financial Solvency Standards Board, Director of the Department of Managed Health Care (DMHC) Shelley Rouillard announced her approval of Anthem, Inc.\u2019s proposed acquisition of Beacon Health Continue reading &rarr;\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:url\" content=\"https:\/\/sites.sandiego.edu\/cpil-blog\/2020\/03\/11\/department-of-managed-health-care-director-approves-anthem-inc-s-acquisition-of-beacon-health-options\/\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:site_name\" content=\"Consumer Protection Policy Center - Blog\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"article:published_time\" content=\"2020-03-11T15:29:20+00:00\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"article:modified_time\" content=\"2020-03-11T20:31:53+00:00\" class=\"yoast-seo-meta-tag\" \/>\n<meta name=\"author\" content=\"Katie Gonzalez\" class=\"yoast-seo-meta-tag\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" class=\"yoast-seo-meta-tag\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" class=\"yoast-seo-meta-tag\" \/>\n\t<meta name=\"twitter:data1\" content=\"Katie Gonzalez\" class=\"yoast-seo-meta-tag\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" class=\"yoast-seo-meta-tag\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" class=\"yoast-seo-meta-tag\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/2020\/03\/11\/department-of-managed-health-care-director-approves-anthem-inc-s-acquisition-of-beacon-health-options\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/2020\/03\/11\/department-of-managed-health-care-director-approves-anthem-inc-s-acquisition-of-beacon-health-options\/\"},\"author\":{\"name\":\"Katie Gonzalez\",\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/#\/schema\/person\/fdc87a266320b80c7a790bdc2a17df69\"},\"headline\":\"Department of Managed Health Care Director Approves Anthem, Inc.\u2019s Acquisition of Beacon Health Options\",\"datePublished\":\"2020-03-11T15:29:20+00:00\",\"dateModified\":\"2020-03-11T20:31:53+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/2020\/03\/11\/department-of-managed-health-care-director-approves-anthem-inc-s-acquisition-of-beacon-health-options\/\"},\"wordCount\":352,\"commentCount\":0,\"keywords\":[\"AB595\",\"anthem\",\"bagley keene\",\"beacon health\",\"DMHC\",\"FSSB\",\"merger\",\"shelly rouillard\"],\"articleSection\":[\"Department of Managed Health Care\",\"Major Projects\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/sites.sandiego.edu\/cpil-blog\/2020\/03\/11\/department-of-managed-health-care-director-approves-anthem-inc-s-acquisition-of-beacon-health-options\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/2020\/03\/11\/department-of-managed-health-care-director-approves-anthem-inc-s-acquisition-of-beacon-health-options\/\",\"url\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/2020\/03\/11\/department-of-managed-health-care-director-approves-anthem-inc-s-acquisition-of-beacon-health-options\/\",\"name\":\"Department of Managed Health Care Director Approves Anthem, Inc.\u2019s Acquisition of Beacon Health Options - 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Brewer On February 5th, 2020, during a public meeting of the Financial Solvency Standards Board, Director of the Department of Managed Health Care (DMHC) Shelley Rouillard announced her approval of Anthem, Inc.\u2019s proposed acquisition of Beacon Health Continue reading &rarr;","og_url":"https:\/\/sites.sandiego.edu\/cpil-blog\/2020\/03\/11\/department-of-managed-health-care-director-approves-anthem-inc-s-acquisition-of-beacon-health-options\/","og_site_name":"Consumer Protection Policy Center - Blog","article_published_time":"2020-03-11T15:29:20+00:00","article_modified_time":"2020-03-11T20:31:53+00:00","author":"Katie Gonzalez","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Katie Gonzalez","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/2020\/03\/11\/department-of-managed-health-care-director-approves-anthem-inc-s-acquisition-of-beacon-health-options\/#article","isPartOf":{"@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/2020\/03\/11\/department-of-managed-health-care-director-approves-anthem-inc-s-acquisition-of-beacon-health-options\/"},"author":{"name":"Katie Gonzalez","@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/#\/schema\/person\/fdc87a266320b80c7a790bdc2a17df69"},"headline":"Department of Managed Health Care Director Approves Anthem, Inc.\u2019s Acquisition of Beacon Health Options","datePublished":"2020-03-11T15:29:20+00:00","dateModified":"2020-03-11T20:31:53+00:00","mainEntityOfPage":{"@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/2020\/03\/11\/department-of-managed-health-care-director-approves-anthem-inc-s-acquisition-of-beacon-health-options\/"},"wordCount":352,"commentCount":0,"keywords":["AB595","anthem","bagley keene","beacon health","DMHC","FSSB","merger","shelly rouillard"],"articleSection":["Department of Managed Health Care","Major Projects"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/sites.sandiego.edu\/cpil-blog\/2020\/03\/11\/department-of-managed-health-care-director-approves-anthem-inc-s-acquisition-of-beacon-health-options\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/2020\/03\/11\/department-of-managed-health-care-director-approves-anthem-inc-s-acquisition-of-beacon-health-options\/","url":"https:\/\/sites.sandiego.edu\/cpil-blog\/2020\/03\/11\/department-of-managed-health-care-director-approves-anthem-inc-s-acquisition-of-beacon-health-options\/","name":"Department of Managed Health Care Director Approves Anthem, Inc.\u2019s Acquisition of Beacon Health Options - 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