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Anthem Blue Cross Blue Shield cancels controversial anesthesia cap

Anthem walked back its new cap on anesthesia coverage set to go into effect in Connecticut, New York, and Missouri.

The insurer had announced on November 1 that it would change its policy to limit anesthesia coverage, which led to backlash from physicians, state governments, and consumer-advocacy groups.

The company said in a statement today that there was “significant widespread misinformation about an update to our anesthesia policy” and therefore it decided not to move forward with it. Anthem, which in 2022 rebranded as Elevance Health, said the update was “only designed to clarify the appropriateness of anesthesia consistent with well-established clinical guidelines.”

The change came after about a month of backlash, including from The American Society of Anesthesiologists, which said that the cap was “arbitrary” and “designed to take advantage of the commitment anesthesiologists make thousands of times each day to provide their patients with expert, complete, and safe anesthesia care.”

Connecticuts comptroller, Sean Scanlon, said Thursday that his office reached out to Anthem about the policy and “is pleased to share this policy will no longer be going into effect here in Connecticut.”

New York Gov. Kathy Hochul said in a Thursday statement that the state pushed Anthem “to reverse course and today they will be announcing a full reversal of this misguided policy.” State officials in Missouri did not immediately respond to a request for comment.

The move comes the day after the Brian Thompson, CEO of UnitedHealthcare, the nations largest health insurer, was killed in Manhattan hours before the companys investor day. The shooter is still at large, and though police have not determined a motive, they reported that the bullet casings had the words “delay” and “deny” inscribed on them.

Online discourse since Thompsons death has highlighted resentment many Americans feel toward private health insurers, which stand to make higher profits when they deny medical claims.

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