UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
_________________________
Date of Report
(Date of earliest
event reported): November 15, 2002
Cobalt Corporation
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(Exact name of registrant as specified in its charter)
Wisconsin 1-14177 39-1931212
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
401 West Michigan Street
Milwaukee, Wisconsin 53203
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(Address of principal executive offices including zip code)
(414) 226-6900
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(Registrant's telephone number)
Item 5. Other Events and Regulation FD Disclosure.
On November 15, 2002, the Registrant announced a plan to consolidate its
claims and customer service departments into a smaller number of offices in
Wisconsin. The number of offices maintained by the Registrant in Wisconsin will
decline from 14 to 12 during the first quarter of 2003. A copy of the press
release containing such announcement is attached as an exhibit to this Report.
During the fourth quarter of 2002 the Registrant plans to record a charge
against earnings of approximately $2.5 million for severance costs and other
expenses relating to the reduction in the number of offices. As a result of
these actions, the Registrant expects to generate annualized savings of
approximately $8 million. These savings were taken into account in 2003 earnings
guidance issued by the Registrant on October 28, 2002, while the $2.5 million
fourth quarter charge was not included in the guidance for 2002.
Cautionary Statement: This Current Report on Form 8-K contains
forward-looking statements with respect to the financial condition, results of
operations and business of Cobalt Corporation. Such forward-looking statements
are subject to inherent risks and uncertainties that may cause actual results or
events to differ materially from those contemplated by such forward-looking
statements. Factors that may cause actual results or events to differ materially
from those contemplated by such forward-looking statements include rising health
care costs, business conditions, impact of elimination of memberships,
competition in the managed care industry, developments in health care reform and
other regulatory issues.
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Item 7. Financial Statements and Exhibits.
(a) Not applicable.
(b) Not applicable.
(c) Exhibits.
99. Press release dated November 15, 2002.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
COBALT CORPORATION
Date: November 15, 2002 By: /s/ Gail L. Hanson
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Gail L. Hanson
Chief Financial Officer
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COBALT CORPORATION
EXHIBIT INDEX TO FORM 8-K
Report Dated November 15, 2002
Exhibit No. Description
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99 Press Release, dated November 15, 2002, issued by Cobalt
Corporation.
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