State Investigation of Blue Cross Payout Under Way
Department of Managed Health Care officials said a $950 million dividend Blue Cross of California paid to its parent company would have been better used toward improving health care for the insurer's members, KPBS' "KPBS News" reports.
The department is investigating whether the payment violates a 2004 agreement that Blue Cross and its parent company, WellPoint, made with the state as part of WellPoint's merger with Indianapolis-based Anthem.
Blue Cross officials maintain that the payment does not violate the agreement and is not out of course for a large company and its parent organization.
The "KPBS News" segment includes comments from:
- Randy Scott of the University of California Office of Human Resources;
- Lynne Randolph of the Department of Managed Care; and
- Peggy Hinz, a public relations executive for Blue Cross (Goldberg, "KPBS News," KPBS, 6/13).
A transcript and audio of the segment are available online. This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.