Judge reviewing insurance case complaint

AUGUSTA – A Superior Court judge Thursday took under advisement a case that could decide whether the state’s largest charitable health-care trust gets millions of dollars more in funding.

A consumers’ group complained that the state insurance regulator erred in calculating the value of Blue Cross-Blue Shield of Maine when it was acquired by Anthem Insurance Co. Inc. of Indiana.

The superintendent last year adjusted the $102 million valuation of Blue Cross to $82 million.

During a hearing in a stifling Augusta courtroom, Consumers for Affordable Health Care and the state attorney general asked Justice Donald Marden to modify the lower valuation.

Assistant Attorney General Christina Hall said there was no evidence to support the final figure Insurance Superintendent Alessandro Iuppa reached after an exhaustive review.

Hall added that she was not seeking to unravel the Anthem-Blue Cross deal, but wanted to “create a debt” owed by Anthem to the people of Maine. She said a large number of Mainers could benefit from a higher valuation for Blue Cross.

The valuation corresponds to the amount of money that goes into what Hall described as the largest charitable trust in the state’s history to serve unmet health needs of Mainers.

Lawyers for the insurance regulator and Anthem argued that reconsidering the sale price could unravel the sale and lead to other unknown consequences.

“What they’re trying to overturn is one of the most extensive administrative proceedings ever done in the state of Maine,” said Peter Brann, representing the superintendent. The proceeding was the subject of a 10,000-page analysis, he noted.

Brann also said that the revised valuation was reached amid a severe downturn in business for Blue Cross, and told Marden that the financial condition of the state’s largest private insurer at the time “should not be swept aside.”

Brann rejected arguments that Blue Cross’ losses were counted twice in the superintendent’s calculation.

Anthem lawyer Catherine Connors said the law does not allow the judge to undo the Anthem-Blue Cross transaction.

Blue Cross had 440,000 members in Maine when Anthem announced plans earlier this year to take its stock public to raise money to buy Blue Cross health care plans in more states.

Consumers for Affordable Health Care, which is composed of 50 member organizations, represents interests of low- and moderate-income consumers.