DOVER, Del. (AP) — Representatives of Blue Cross Blue Shield of Delaware urged state lawmakers on Wednesday to change a 2004 law that Blue Cross claims could endanger its proposed affiliation with Pennsylvania-based Highmark Inc.
Blue Cross pressed for the law to be revised after Attorney General Beau Biden determined that it requires that the affiliation with Highmark be considered a not-for-profit conversion under Delaware law. That determination means a foundation must be created to ensure that a portion of the $175 million in reserves that Blue Cross has accumulated over several years because of its favorable tax-exempt status is protected and used for the benefit of Delawareans.
But Blue Cross says Highmark has reserved the right to walk away from the affiliation if it is deemed a conversion, even though Blue Cross has ensured that the reserves would stay in Delaware.
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