Anthem, Indianapolis, has completed its $4.2 billion acquisition of Trigon Healthcare, Richmond, Va., securing its position as the nation's largest operator of Blues plans. With the addition of 2.2 million-member Trigon, which owns Virginia's Blue Cross and Blue Shield plan, Anthem now covers 10.1 million Blues members in nine states: Colorado, Connecticut, Indiana, Kentucky, Maine, Nevada, New Hampshire, Ohio and Virginia. Its closest rival in size, WellPoint Health Networks, Thousand Oaks, Calif., covers 9.9 million Blues members in California, Georgia and Missouri. The acquisition extends Anthem's geographic reach into the Southeast, where the company is expected to go head-to-head with WellPoint for further Blues-plan acquisitions. Trigon, which controls 35% of Virginia's health insurance market, will be renamed Anthem Blue Cross and Blue Shield in early November. Three former Trigon board members will join Anthem's board. Under the merger deal signed in late April, Trigon's shareholders will receive $30 in cash and 1.062 shares of Anthem stock for each share of Trigon stock. Continued consolidation has cut the number of Blues plans nationwide to 43 from 72 in 1990. -- by Laura B. Benko
Anthem buys Trigon, grows to 10.1 million members
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