BCBSNC to Resubmit For-Profit Plan

BCBSNC originally submitted the plan in January and has since been gathering information about the conversion requested by the Department of Insurance. Unlike its major competitors, BCBSNC is currently a nonprofit organization.

If BCBSNC and the Department of Insurance reach a consensus, 100 percent of the value of the company would go to a foundation to be called Health Foundation for North Carolina Inc. The foundation would sell stock over several years, providing money to promote the health of North Carolinians. The board of the foundation would make all the decisions regarding what the money would specifically fund.

BCBSNC plans to uphold three core principles in the conversion plan. First, an independent foundation will be established to address North Carolina's health care needs. The only way to fund the foundation would be for BCBSNC to issue 100 percent of its ownership to the foundation, as set out in a law passed in 1998.

Second, BCBSNC will be maintained as a North Carolina based-company.

Lastly, the company will be allowed to operate as all other for-profit companies do.

The Department of Insurance's job in the conversion is to make sure these principles are maintained and to ensure fairness to the policy holders, whereas the attorney general's role is to review all the issues related to the independent foundation. The information the Department of Insurance requested in January dealt with the affordability of the new plan and how the conversion will affect customers and provider availability.

"These were very important issues considering BlueCross and BlueShield has customers in all 100 counties," said Chrissy Pearson, spokesperson for the Department of Insurance.

Pearson said several issues are still up in the air and that she is not certain a consensus will be reached.

Representatives from BCBSNC are optimistic about the impact their discussions with legislators are having on the process.

"We are having productive talks with the Department of Insurance, and we are pleased with the progress we are making," said Michelle Vanstory, public relations manager for BCBSNC.

Vanstory said the conversion will benefit policy holders in many different ways. Becoming a for-profit organization will even the playing field between BCBSNC and its competitors, allowing it to remain a stable and reliable insurer to its 2.5 million customers.

She says conversion will also give the company greater flexibility and access to capital to finance customer service improvements and invest in new products and services.

"Right now, customers want health care information at their fingertips 24/7. To help them out in these ways, we need technology and resources," Vanstory said.

As a nonprofit company, BCBSNC pays for new services with the premiums customers pay. Converting to a for-profit organization will give it a new way to fund development without any more pressure on the premiums. The conversion itself should not increase premiums, change health care benefits or affect customers' choices of providers.

After the July 26 submission, there will be three public hearings, which are not yet scheduled. Representatives from the Department of Insurance said that if BCBSNC submits the plan on schedule, the conversion will be complete sometime in October.

The City Editor can be reached at citydesk@unc.edu.