ATTORNEY GENERAL APPLAUDS PROCESS, COMMISSIONER’S
DECISION IN PROPOSED CAREFIRST SALE

Attorney General, J. Joseph Curran, Jr., announced today his support of Maryland Insurance Commissioner Steven B. Larsen’s decision to reject the application of CareFirst, Inc., the State’s largest heath insurer, to convert from a non-profit to a for-profit company and to be acquired by WellPoint Health Networks, Inc. of California.

"I commend the extraordinary work performed by Commissioner Larsen," Attorney General Curran said. "The Commissioner conducted a fair, thoughtful, and comprehensive evaluation of the proposed transaction."

In November 2001, the Attorney General called for further examination of the proposed transaction and vowed to work with other State officials, including Commissioner Larsen, responsible for protecting charitable assets as well as the public.

"My prevailing concern has been whether this deal would be in the interest of all Marylanders. Commissioner Larsen’s investigation and subsequent report make it clear that it would not," Curran added.

The Attorney General noted that he will continue to support the General Assembly’s efforts to ensure that CareFirst is responsive to the healthcare needs of Maryland citizens.

CareFirst insures nearly one out of every two Maryland citizens who have health insurance.

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