Garamendi Unveils AnthemWellPoint Proposal

Other undertakings would require Anthem to ensure that Blue Cross of California complies with California’s HMO consumer protection standards and to ensure that BC Life and Blue Cross continue to serve roughly the same markets that they have served in the past.

Garamendi also wants to protect private employers that have BC Life PPO coverage from mass plan terminations.

Proposed Undertaking 6 states that “BC Life will renew and not terminate any health benefit plan in full compliance with the California Insurance Code and will not terminate any health benefit plan before the end of its contract term, except as expressly permitted by the California Insurance Code,” according to Garamendi’s undertakings proposal.

“If BC Life withdraws a health benefit plan from the market it will provide advance notice to the [Department of Insurance] and the policyholders covered by that health benefit plan and will permit each such policyholder to select continued coverage from among BC Life’s other health benefit plans without regard to any health status related factor, ” according to the Garamendi proposal.

If BC Life withdraws any plans from the market within 3 years after the completion of the Anthem deal, it must let plan members with pre-existing conditions enroll in new BC Life or Blue Cross plans and waive any pre-existing condition exclusions for members who comply with statutory eligibility requirements, according to the Garamendi proposal.