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PacifiCare Blocked from Paying $120 Million in Dividends
Health Leaders Media

California’s insurance commissioner on Monday blocked PacifiCare Life & Health Insurance Co., a major California health plan, from paying its parent company UnitedHealth Group $120 million in a dividend, saying the money may be needed to pay penalties ordered by the state.

“It is entirely possible that allowing United to siphon off $120 million would enable them to turn penalties into profits,” said Insurance Commissioner Steve Poizner. “My order simply requires that the company keep the money where it would be available to satisfy any order that is issued.”