AUGUSTA – Maine officials have warned Anthem Health Plans of Maine that the state will oppose Maine ratepayers paying any portion of the cost of its parent company’s acquisition of California-based Wellpoint Health Networks Inc. Indiana-based Anthem Inc., has agreed to pay more than $600 million in compensation to the top executives of Wellpoint as part of the purchase.

Al Iuppa, Maine insurance superintendent, wrote Marjorie Dorr, president of Anthem Health Plans of Maine last month criticizing the “lavish” benefits being paid to Wellpoint’s top executives.

“At a time when more than one in seven Maine residents lacks health insurance and thousands more can only afford the barest, minimal coverage, the compensation packages afforded Wellpoint executives appear grossly excessive,” Iuppa wrote.

He said that while the state lacks the authority under current law to review the pending merger, his office will be vigilant to protect Maine ratepayers.

“We do intend to closely scrutinize all transactions between AHPM (Anthem Health Plans of Maine) and its parent and all future AHPM rate filings to ensure that this transaction will not be funded on the backs of Maine policyholders,” Iuppa wrote.

In her letter responding to Iuppa, Dorr defended the acquisition and said it would be good for AHPM and good for Maine. She pointed out the compensation plan was in place for the last decade at Wellpoint and was not negotiated by Anthem.

“The non-insurer parent holding company, Anthem Inc., will absorb the cost of the change in control payments and any payments will not be the responsibility of Anthem Health Plans of Maine, Inc.,” she wrote. “As previously discussed with you and your staff, premiums in Maine will not increase as a result of this merger.”

Gov. John Baldacci said he wants to make sure that is what happens. He said he has instructed Iuppa to recommend any changes in state law that may be needed to make sure the costs are not passed on to Maine ratepayers.

“If there needs to be any changes, we will have them ready for the Legislature to consider,” he said. “I am very, very concerned about this and I do not want Maine policyholders to pay for this excessive compensation.”

Dorr, AHPM president, received compensation totaling $913,956 in 2003. Two other executives had packages over $300,000 a year and four other executives had packages in excess of $200,000 a year.

Iuppa said the state does not review individual rates of compensation, but does scrutinize salaries as part of the overall administrative cost of the company. He said six figure salaries for top executives of Maine companies of comparable size “is quite common.” He said the executive salaries of AHPM are well below those paid by the parent company.