Anthem, Georgia in Talks

Georgia’s insurance commissioner has rebuffed Anthem Inc.’s proposed $18.4-billion acquisition of Thousand Oaks-based WellPoint Health Networks Inc., but the regulator is still talking to Anthem about what it would take to win his approval.

The deal would create the nation’s largest health insurance company.

This week, California’s insurance commissioner, John Garamendi, who in July had blocked the Anthem-WellPoint deal, relented when the companies agreed to provide $265 million for healthcare improvements in California.

Over the last few days, Indianapolis-based Anthem has been contacting regulators in eight states and Puerto Rico to determine where they stood on its bid to buy WellPoint.

Georgia Insurance Commissioner John Oxendine, like regulators in the other states, had initially approved the deal. But he withdrew his approval in July when the companies pledged to invest $100 million in California health programs in exchange for the approval of California’s Department of Managed Health Care.

On Tuesday, Garamendi -- the second California regulator with some authority over the deal -- dropped his opposition after winning an additional $165 million in spending and investment from the companies.

Anthem executives then proposed concessions to Oxendine, according to sources familiar with the talks. He balked at the initial offer, but the talks are continuing. Oxendine had said earlier he was concerned that Georgia get its fair share.

Anthem spokesman Ed West declined to comment Friday on talks with state regulators.

Analysts have said any concessions Anthem makes to win back Oxendine’s approval or to shore up other states would be much smaller than those offered to California. They still expect the deal to close this month.