TOPEKA, Kan. (AP) – The Kansas Supreme Court on Wednesday blocked the $190 million sale of the state’s largest health insurance company to an Indiana firm.

The court’s unanimous ruling will prevent Indianapolis-based Anthem Insurance Companies from buying Blue Cross-Blue Shield of Kansas under the terms of a 2001 deal between the two companies.

The justices affirmed an order issued by Gov. Kathleen Sebelius when she was state insurance commissioner. Sebelius said the purchase would have raised Kansans’ premiums too much.

“We give deference to the commissioner’s interpretation and find that it is reasonable,” the court wrote in an unsigned opinion. “The legislative history also reinforces the commissioner’s interpretation that the public concern is overriding.”

The decision overturns a ruling by Shawnee County District Judge Terry Bullock that concluded Sebelius did not have the authority to block the sale.

Sebelius called the decision an important victory for Blue Cross policyholders and insurance consumers generally.

“It would have cost Kansas businesses, small employers and families millions of dollars in additional health insurance premiums,” Sebelius said of the proposed sale.

Michael Mattox, Blue Cross president and chief executive, said officials would “devise a new plan for the company’s future.” Blue Cross spokesman Graham Bailey said the company would not seek another proposal from Anthem or look for another buyer.

“We’re prepared to progress as an independent, single-state plan,” Bailey said.

Anthem expressed disappointment with the decision but said it will not affect its strategy of growing by acquiring new health plans.

“We have had remarkable success in bringing about affiliations with other Blue Cross and Blue Shield plans,” Larry Glasscock, Anthem’s chairman and chief executive officer, said in a statement.

Anthem had planned to pay $190 million for the Kansas company, and Blue Cross would have distributed at least $142 million of Anthem’s funds and $131 million of its existing reserves to policyholders.

Blue Cross holds 45 percent of the Kansas health insurance market, with 172,000 group and individual policies covering 400,000 people; an additional 315,000 people work for employers who self-insure but have their plans administered by the Blues.

Anthem is now the nation’s fifth-largest publicly traded health benefits firm, with about 11 million policyholders. It contends it can reduce costs in Kansas through efficiencies.

Doctors in its home state have accused Anthem of unfair billing practices, and the company has had protracted negotiations with hospitals over health coverage contracts. In 2002, Indiana’s insurance commissioner ordered an investigation of Anthem’s claims practices.

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On the Net:

Blue Cross-Blue Shield of Kansas: http://www.bcbsks.com/

Anthem: http://www.anthem.com

Governor’s office: http://www.ksgovernor.org

Supreme Court: http://www.kscourts.org

AP-ES-08-06-03 1731EDT