Business
Calif. regulator: Dismiss Anthem suit
NEWS IN BRIEF — Posted Sept. 13, 2004
The insurance commissioner of California Aug. 25 asked a state court to reject Anthem Inc.'s lawsuit charging that he had erred in judgment and overstepped his authority when he declined to sign off on the insurer's proposed merger with WellPoint Health Networks.
Commissioner John Garamendi turned down the deal in July, and Anthem filed its suit Aug. 3. Garamendi's motion, in the California Superior Court for Los Angeles County, reiterated his position that the merger could hurt insurance subscribers in California, where WellPoint is based, because of potential premium increases and corporate debt that could result from the deal.
The commissioner has strongly criticized the companies' plan to pay high bonuses to WellPoint executives as part of the $16.5 billion merger.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/09/13/bibf0913.htm.












