COLORADO BLUES: Files For-Profit Conversion Papers
Blue Cross Blue Shield of Colorado, temporarily derailed by a proposed rival bid by California-based Wellpoint Health Networks, is moving right along its track to acquisition by Indianapolis-based giant Anthem Health Care, Inc.. The Colorado Blues filed papers Monday with the state division of insurance to convert to a privately held, for-profit company. If the plan is approved, Anthem will purchase the entirety of the new for-profit's stock, with "at least" $140 million going to establish a charitable foundation for the "health care needs of Colorado residents." In the process of converting to a for-profit after years of tax exemption, the Colorado Blues needs to prove that the change will benefit its members and other Colorado residents. "You need to make sure that in lieu of all the benefits they have received ... their subscribers won't be harmed," said insurance division spokesperson Nancy Ryan. A Blue Cross spokesperson said, "The foundation has a tremendous opportunity to address the issue of the uninsured (and) the underinsurance of children." With 400,000 members, Blue Cross Blue Shield of Colorado is one of the state's largest insurers. Public hearings on the conversion are expected to be set within 30 days (Fletcher, Colorado Springs Gazette, 8/17).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.