Anthem Blue Cross Blue Shield said Thursday it was not going ahead with a policy change that would limit reimbursements for anesthesia during surgery and medical procedures. The new policy would have reimbursed doctors based on time limits set by the insurer.

Anthem BCBS, one of the largest health insurers in the U.S., quietly announced the new reimbursement policy last month for Connecticut, New York and Missouri beginning in February. The policy change triggered outrage from the American…