WellPoint Sacks CFO; Blue Cross Says Move is Unrelated to Payout

By Kenny Goldberg / Health Reporter, KPBS Public Broadcasting

Published June 1, 2007 at 1:11 PM PDT

This story was published more than 17 years ago.

Blue Cross officials say the sudden ouster of their parent company's chief financial officer won't have any effect on California operations. And officials say there's no connection between the move an

Blue Cross officials say the sudden ouster of their parent company's chief financial officer won't have any effect on California operations. And officials say there's no connection between the move and a recent $950 million payout from Blue Cross to its parent, WellPoint. KPBS reporter Kenny Goldberg has more.

WellPoint officials say CFO David Colby was forced out for violating the company's code of conduct. Meanwhile, state regulators are investigating whether Blue Cross's big dividend to WellPoint violates a pre-merger agreement signed in 2004.

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Lynne Randolph is with the California Department of Managed Healthcare.

Randolph : We feel that a $950 million payment is taking that money directly from California rate-payers, where that money could maybe better be used to provide healthcare for the Blue Cross of California members.

Blue Cross officials insist the payment is legitimate, and say the company is experiencing strong growth.

Kenny Goldberg, KPBS News.