PacifiCare Health Systems Inc. and UnitedHealth Group Inc. made their case for UnitedHealth’s proposed $8.1 billion buy of Cypress-based PacifiCare during a public hearing Thursday at Santa Ana City Hall.
The hearing is one of two the state Department of Managed Health Care is having as it considers whether to allow the deal, the second large one involving a California healthcare company in the past year.
Minnesota-based UnitedHealth said it would buy PacifiCare last month in a deal that would create the country’s second-largest HMO if it goes through. The deal still faces heavy scrutiny, including antitrust reviews by federal regulators and a review from Insurance Commissioner John Garamendi’s office.
The hearing even featured a bit of guerrilla theater. The Foundation for Taxpayer and Consumer Rights, a Santa Monica consumer group opposed to the deal, brought three PacifiCare members and two live pigs to a press conference prior to the hearing to protest what it says are excessive executive bonuses and reserves totaling more than $600 million.
