Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
ThinkAdvisor

Life Health > Health Insurance

WellPoint Gives Up On CareFirst Deal

X
Your article was successfully shared with the contacts you provided.

NU Online News Service, April 7, 2003, 10:23 a.m. EDT – WellPoint Health Networks Inc., Thousand Oaks, Calif., says it is giving up on its efforts to acquire CareFirst Inc., Owings Mills, Md.

WellPoint, a large California managed care company, offered $1.37 billion for CareFirst, the parent company of the Blue Cross and Blue Shield companies in Delaware, Maryland, Northern Virginia and the District of Columbia, in November 2001.

Under Maryland law, CareFirst is a nonprofit company that holds its assets in trust for the people of the state. CareFirst offered to compensate the people of Maryland by using the proceeds from the sale to WellPoint to create a new health care charity.

But consumer groups persuaded Maryland Insurance Commissioner Steven Larsen that the price WellPoint was offering for CareFirst was too low. Larsen also agreed with the consumer groups that the deal might hurt Maryland consumers’ access to affordable health care. Larsen rejected WellPoint’s bid March 5.

WellPoint “has decided not to appeal the Maryland insurance commissioner’s decision disapproving the proposed conversion of CareFirst Inc. to for-profit status,” the company says in a statement about its decision.


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.