Medica, the Minnesota health plan that split from Allina Health System in 2001, will continue to be subject to regulatory authority by state Attorney General Mike Hatch, a judge ruled last week.
Earlier this year, Medica filed a petition in Hennepin County (Minn.) District Court seeking the dismissal of a 2001 settlement with Hatch that allowed the attorney general to oversee the six-member board. Hatch had audited the health plan and revealed wasteful spending by executives.
Judge David Duffy ruled that Medica could not abandon the settlement it reached with Hatch in 2001. In his ruling, Duffy wrote that the attorney general oversight was needed because of a past history of mismanagement. In a statement, Medica said it would appeal the ruling. -- by Patrick Reilly