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.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
