Published January
2004
State
to delay decision
on Premera conversion plan
SCBJ
Staff
The state insurance
commissioner agreed in December to delay until June a decision on whether
Premera Blue Cross should be allowed to become a for-profit company.
Commissioner Mike
Kreidler said he will make his final decision by June 7 after a final
hearing on March 29.
Premera, the state’s
largest health insurer and one of Snohomish County’s biggest employers,
has asserted over the past year that becoming a for-profit company with
shareholders would help raise capital to improve services and technology.
The Mountlake Terrace-based company’s conversion from nonprofit status
requires approval from the insurance commissioner and the state attorney
general.
The previous schedule
called for the hearing in January, with a decision by March 15. Early
in December, Premera asked for the delay. The request came after consultants
hired by the Insurance Commissioner’s Office raised warnings in their
reports about Premera’s proposed conversion.
Premera spokesman
Scott Forslund said the later deadline would give the company time to
discuss issues raised in reports with the insurance commissioner. Kreidler’s
staff agreed on that point and recommended the delay.
A coalition of hospital
and health-care representatives that has been critical of Premera’s conversion
opposed the later decision deadline. Cassie Sauer, spokeswoman for the
Washington State Hospital Association, said Premera was past the deadline
for making major changes to its proposal.
Oct. 15 was the deadline
for formal changes to Premera’s initial application. That deadline, however,
didn’t prevent future changes in order to respond to state officials’
concerns, Forslund said.
Sandi Peck, spokeswoman
for the Office of the Insurance Commissioner, said if the conversion plan
is changed substantially, the state could hold additional public hearings.
Back
to the top/January
2004 Main Menu