Department of Insurance, Securities and Banking: Press Release

Washington, DC - The DC Department of Insurance and Securities Regulation (DISR) set dates for two public forums on the pending application of WellPoint Health Network Inc. to acquire CareFirst, Inc. CareFirst is the parent organization of Group Hospitalization and Medical Services, Inc. (GHMSI), the District of Columbia’s Blue Cross/Blue Shield health provider. The forums will be held from 6 to 9 pm on Wednesday, May 22, and Tuesday, May 28, at One Judiciary Square, 441 4th Street, NW. The comments will be made part of the official record, and will be considered by the Insurance Commissioner in making his decision.

Time limits on speakers may be imposed to accommodate all interested persons. Anyone who would like to make an oral presentation at either of the public forums is requested to register in advance by contacting the Hearing Officer of the Department at (202) 442-7756 or by email. A sign language interpreter will be provided at all sites. Written comments on the application will be accepted in lieu of oral presentations. Written comments must be received by the Commissioner no later than May 31, 2002.

The Commissioner will hold a formal public hearing that will include presentations by WellPoint and CareFirst Blue Cross Blue Shield officials, the Department’s experts, and other parties and interested participants. That hearing is tentatively scheduled for November 12, 2002. The time and place for that hearing will be published at a later date.

The Commissioner issued a Preliminary Order and a Proposed Case Management Order on April 5, 2002. The Preliminary Order sets forth the Department’s jurisdiction over the matter, explains why it would be premature to hold the formal public hearing on WellPoint’s application at this time, and directs WellPoint to file a draft amended and restated application on or before July 16, 2002 which shall remedy certain deficiencies in the application. The Proposed Case Management Order addresses the process that the Department proposes to use in its review of the application, and is open to public comment until May 15, 2002.

Written comments for the public forums or the Proposed Case Management Order should be directed to Senior Counsel, District of Columbia Department of Insurance and Securities Regulation, 810 First Street NE, Suite 701, Washington, DC 20002.

On January 11, 2002, WellPoint Health Network Inc. filed an application with DISR seeking the approval of the DC Commissioner of Insurance and Securities Regulation for the acquisition of GHMSI and its parent company, CareFirst Inc.

Click here for a copy of the Public Forum Notice and other public documents in this matter.

The DC Department of Insurance and Securities Regulation (DISR) has two missions, (1) to provide fair, efficient and fast regulatory supervision of the insurance and securities businesses for the protection of the people of the District of Columbia, and (2) to create conditions that will retain and attract national and international insurance and other financial businesses to the District.