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Compromise is needed on health insurer sale June 28, 2011 We'd better get used to battles like the one expected to come up in the state Senate today. The senators may consider a bill that would change the wording of a 2004 law governing the sale of not-for-profit health insurance companies. At issue is the pending sale of Blue Cross Blue Shield of Delaware to Highmark Inc., a much larger health insurer with headquarters in Pittsburgh. Delaware Attorney General Beau Biden believes the sale would qualify as a "conversion" of Blue Cross Blue Shield into a for-profit company. Therefore, Mr. Biden believes the taxpayers of Delaware have a stake in a portion of the company's $165 million in reserves. That stake was earned by the company's 75 years of nonprofit status in the state. However, Blue Cross Blue Shield maintains that since it and Highmark are both nonprofit companies, the "conversion" language of the 2004 law is misleading and should be changed. Blue Cross Blue Shield has repeatedly said the "conversion" decision could squelch the sale. The Senate bill, barring any last-minute compromises, would change the language and take away a portion of the attorney general's review power. Final approval must still come from the state insurance commissioner. This isn't a straight-out business deal. Nor does it fit the old idea of what a nonprofit is. Both companies are large and successful. Taxpayers do a have a stake in a portion of that reserve, but the deal obviously isn't a conversion. A compromise that would put part of the reserve to work for taxpayers and still allow the sale to go forward would be ideal. |
