In a quick update to a story I commented on last week, the payout to Wellpoint execs has got the big Kahuna of all shareholders, CalPERS (the California State employees’ pension system), in a tizzy. Calpers now plans to vote against the Anthem-WellPoint merger. Realistically this won’t stop the merger, and neither probably will the disapproval from the State government. But expect there to be some more to-ing and fro-ing between the state and Wellpoint.
However it’s hard to see what the state would usefully do with the extra money. There are already two huge Foundations in California pumping out (very good!) research and programs with the money from the Wellpoint conversion back in the 1990s. And realistically there’s not enough money available to solve California’s real health care crisis–the 25% uninsurance rate–even if Len Schaeffer gave all his marbles back.