Anthem Blue Cross will not join small business healthcare pool

California's largest health insurer for small companies, Anthem Blue Cross, said it will not participate in the state's Covered California exchange. California has dropped a requirement that health insurance companies participating in the individual insurance exchange also submit a bid for the small-business health options program, which is known as SHOP, the Los Angeles Times reported Saturday. Anthem, a division of WellPoint Inc., chose to drop out of the government-run exchange for small businesses that is to open Jan. 1, company spokesman Darrel Ng said. "Because Anthem is no longer required to participate in SHOP as a condition of being on the individual exchange, Anthem has withdrawn its SHOP application," Ng said. "Anthem will continue to participate in the individual exchange." "That's really surprising and not a good thing for the exchange," said Micah Weinberg, a senior policy adviser at the Bay Area Council, a firm that advises employers. "Anthem is a very major player in the small-group market and you want a broad range of insurers, particularly the most compelling brand names." Anthem was the leader in the small business health insurance market in 2011 with a 31 percent market share, the Times said. Kaiser Permanente had a 28 percent market share in 2011, followed by Blue Shield of California, which had an 18 percent share.