Comptroller Appeals Blue Cross Decision
|Contact: Martha Carlson|
State Comptroller Nancy Wyman announced today that she has commenced an appeal of the decision of the Department of Insurance approving the merger of Blue Cross/Blue Shield of Connecticut into Anthem Insurance Company.
"I have brought this action to protect the rights of policyholders who have been shortchanged by the Insurance Department's decision," Wyman said. "As Comptroller, I am responsible for protecting and recovering assets that belong to the state of Connecticut." The assets and reserves that were built up over the course of the last 13 years that Blue Cross has been a mutual company were, in large measure, the result of favorable treatment by the state, Wyman said. Those assets and reserves came from the policyholders, of which the state of Connecticut is one. Blue Cross insures almost 25 percent of the population of the state.
Under the merger, as approved, almost $100 million of assets and reserves accumulated from premiums paid by Connecticut policyholders are being transferred to an Indiana mutual company, largely for the benefit of its policyholders.
While not necessarily opposing the merger, Wyman is seeking to have the court re-examine the fairness of the transaction and order that more be given to the policyholders than merely continuation of coverage.
Due to his recusal in this matter, the Attorney General has retained Attorney Mark Shipman of the firm of Levy & Droney, P.C., to represent the Comptroller in these proceedings.
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For Immediate Release
September 12, 1997
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