Blue Cross of California and WellPoint Health Networks Inc. receive assurance of final decision on merger.WOODLAND HILLS, Calif.--(BUSINESS WIRE)--Aug. 23, 1995--Blue Cross of California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). (BCC (Blind Carbon Copy) The field in an e-mail header that names additional recipients for the message. It is similar to carbon copy (cc), but the names do not appear in the recipient's message. Not all e-mail systems support the bcc feature. See fcc. ) and its subsidiary, WellPoint Noun 1. wellpoint - a perforated tube driven into the ground to collect water from the surrounding area well point tube, tubing - conduit consisting of a long hollow object (usually cylindrical) used to hold and conduct objects or liquids or gases Health Networks Inc. (NYSE NYSE See: New York Stock Exchange :WLP WLP WebLogic Portal (Bea Systems) WLP Wafer Level Packaging WLP Women's Learning Partnership (Bethesda, MD) WLP Workplace Learning & Performance WLP World Library Partnership, Inc. ) (WellPoint), Wednesday announced that they have received letters and Orders of Postponement from the California Department of Corporations (DOC See doc file and docs. 1. Doc - Directed Oc 2. doc - /dok/ Common spoken and written shorthand for "documentation". Often used in the plural "docs" and in the construction "doc file" (i.e. documentation available on-line). ) which indicate that the Department "should be in a position to render a final decision approving the transaction on or about September 7, 1995." The transaction under consideration by the Department includes the recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. of WellPoint, the merger of WellPoint with Health Systems International, Inc. (NYSE:HQ) (HSI (Hue Saturation Intensity) A color space similar to HSB. See HSB. ) and BCC's proposed public benefit plan. The letter and Order of Postponement provided to BCC are attached. Blue Cross of California is a non-profit, public benefit, managed health care corporation. WellPoint Health Networks Inc. is one of the nation's largest publicly traded managed health care companies, serving 2.8 million medical members and 9 million pharmacy/dental members. WellPoint offers a comprehensive array of managed care health plans through its health maintenance organization, preferred provider organization pre·ferred provider organization n. Abbr. PPO A medical insurance plan in which members receive more coverage if they choose health care providers approved by or affiliated with the plan. and specialty managed care networks. Specialty products include pharmacy benefit management A Pharmacy Benefit Manager (PBM) is a third party administrator of prescription drug programs. They are primarily responsible for processing and paying prescription drug claims. , dental, vision, mental health, life insurance and workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. . In February 1995, WellPoint began operations in Texas with the acquisition of AHI AHI, n.pr See Aviation Health Institute. Healthcare Corporation, providing managed health care services to about 700,000 non-risk members. -0-
DEPARTMENT OF CORPORATIONS
Sacramento, California
August 22, 1995
IN REPLY REFER TO:
FILE NO: 933-0303
Brian J. Donnelly Senior Vice President/General Counsel BLUE CROSS OF CALIFORNIA 21555 Oxnard Street Woodland Hills, CA 91367 RE: BLUE CROSS OF CALIFORNIA -- MM No. 310/367-5135 Dear Mr. Donnelly: Enclosed please find an Order Postponing the Notice of Material Modification referenced above.
The Order of Postponement has been issued to provide the Department
of Corporations ("Department") time to continue reviewing
documentation relating to the Public Benefit Plan filed by Blue Cross
of California. Additionally, the Order is being issued to allow the
Department the opportunity to review the Plan's August 21, 1995
response to the Department's August 7, 1995 comment letter regarding
the material modification filed on May 15, 1995.
Subject to satisfactory documentation and resolution of the issues that have been raised during the course of our review, the Department should be in position to render a final decision approving the transaction on or about September 7, 1995. Yours truly, CHARLES I. GIBBS Senior Corporations Counsel 916/324-9017 CIG:tb
cc: Warren Barnes
Anita Ostroff
Laura Olson
-0-
STATE OF CALIFORNIA
BUSINESS, TRANSPORTATION AND HOUSING AGENCY
DEPARTMENT OF CORPORATIONS
File No. 933-0303
MM No. 310 357 5135
Order No. S-293
Licensee: BLUE CROSS OF CALIFORNIA
ORDER
POSTPONING NOTICE OF MATERIAL MODIFICATION
The Notice of Material Modification filed May 15, 1995, proposing the recapitalization of WellPoint Health Systems, Inc., the combination of WellPoint and Health Systems International, Inc. and the amendment of Licensee's Public Benefit Plan is postponed, and the effectiveness of the changes proposed in the Notice are postponed, effective August 22, 1995. This Order shall remain in effect until revoked or superseded by further Order of the Commissioner.
Dated: August 22, 1995
Sacramento, California
GARY S. MENDOZA Commissioner of Corporations
By: CHARLES I. GIBBS
Senior Corporations Counsel
CIG:tb CONTACTS: Blue Cross of California Larry Bryant, 818/703-2473 or WellPoint Health Networks Inc. John Cygul, 818/703-4321 |
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