State Insurance Commissioner John Garamendi has given his approval to a proposed merger between Minneapolis-based United-Health and California's PacifiCare. Consumer groups aren't happy about it. KPBS Reporter Kenny Goldberg has the story.
The proposed UnitedHealth PacifiCare merger will generate hundreds of millions of dollars in executive bonuses. Consumer groups fear Californians may see higher health insurance premiums as a result.
State Insurance Commissioner John Garamendi says that's not going to happen.
Garamendi: "We have very specific requirements in the agreement, that none of the costs of the merger will be passed on to consumers, or taken from providers."
But after last year's merger between healthcare giants Wellpoint and Anthem, Blue Cross of California premiums went up by more than ten percent.
Garmendi says he has no control over rate increases linked to medical inflation.
Kenny Goldberg, KPBS News.
