CareFirst Worth More Than Bid, Report Says

WellPoint Health Networks Inc.’s $1.37-billion bid for CareFirst BlueCross BlueShield falls short of the nonprofit health insurer’s worth, according to a report commissioned by the District of Columbia.

CareFirst, which has 3.2 million customers in the District of Columbia, Maryland, Virginia and Delaware, is worth $1.65 billion to $1.75 billion, said an independent consultant, Cain Bros. & Co. An earlier report commissioned by Maryland regulators estimated CareFirst’s value at $1.3 billion to $2.25 billion.

The companies have proposed changes aimed at swaying Maryland legislators who have tried to block the purchase on the grounds that it would make insurance more expensive for the poor.