California insurance regulators want to put limits on a proposed acquisition of WellPoint Health Networks Inc., Thousand Oaks, Calif.[@@]
California Insurance Commissioner John Garamendi hopes to exercise that control by putting restrictions on plans by Anthem Inc., Indianapolis, to acquire a key WellPoint subsidiary, BC Life & Health Insurance Company, an affiliate of Blue Cross of California that sells preferred provider organization coverage.
BC Life is WellPoint’s main California life insurance subsidiary. WellPoint’s other California operating units include ordinary corporations and a health maintenance organization that is regulated by the California Department of Managed Health Care.
Garamendi has announced an effort to persuade Anthem and BC Life to agree to a list of 15 “undertakings.”
Some of the undertakings would require Anthem to keep up BC Life’s capital levels and use its own cash to make any retention payments or severance payments due to WellPoint executives as a result of the acquisition.