News Headlines Article

California approves Blue Shield, Care1st merger over consumer group objections
Modern Healthcare

The state of California approved Blue Shield of California’s acquisition of a Los Angeles managed-care company on Thursday in a $1.2 billion deal that cost the combined entity its state tax-exempt status.

The news that Blue Shield may complete its acquisition of Care1st Health Plan follows a lengthy regulatory approval process where consumer groups such as Health Access California vigorously opposed the plan, fearing it would lead to large rate increases.