UnitedHealth bids for Oxford Health Plans.(Deals)(Oxford Health Plans Inc.)(UnitedHealth Group Inc.)

National Underwriter Life & Health-Financial Services Edition, May, 2004 by Bell, Allison

JUST 4 DAYS AFTER WELLCHOICE INC. said it was giving up on its effort to acquire Oxford Health Plans, UnitedHealth Group stepped up with a $4.9 billion cash and stock offer for Oxford.

Oxford, Trumbull, Conn., insures the health of 1.4 million residents of Connecticut, New York and New Jersey, and administers coverage for another 107,S00 "tri-state area" residents. Minnetonka, Minn.-based UnitedHealth's offer amounts to about $3,500 for each of Oxford's insured commercial members.

Now WellChoice, the parent of Empire Blue Cross Blue Shield, looks as if it could be either an acquirer or an acquiree, says Lindsay Resnick, a Chicago-based health insurance market expert.

In fact, to Resnick, plenty of other managed care companies look as if they...