HELENA, Mont. (AP) — Montana’s insurance commissioner has approved the $1.5 million buyout of a portion of New West Health Services, Montana’s third-largest health insurance company.
Securities and Insurance Commissioner Monica Lindeen on Tuesday approved PacificSource’s takeover of New West’s commercial business of 8,600 policyholders. It was the final regulatory hurdle in a government antitrust case that called for the breakup of New West.
Federal and state prosecutors intervened last year after Blue Cross and Blue Shield of Montana proposed a $26 million buyout of New West insurance policies for nearly 11,000 employees at five hospitals across the state.
Prosecutors say the deal would have stifled competition and driven up policy costs.
After the sale is completed, U.S. District Judge Richard Cebull is expected to sign a final judgment in the antitrust settlement.
