Business
Montana passes bill on Blues for-profit conversion
NEWS IN BRIEF — Posted April 11, 2005
The Montana Legislature in March passed legislation, supported by the Montana Medical Assn., that would safeguard public assets if BlueCross BlueShield of Montana converts to a for-profit company.
The measure provides that if BlueCross, the state's leading commercial health plan, converts to a shareholder-owned managed care plan, or merges or is bought out by another for-profit plan, the fair market value of the newly for-profit company would be transferred to a nonprofit charitable trust in the form of cash, securities or bonds.
The bill also applies to nonprofit New West Health Services, Montana's second-largest health insurer.
Expected to be signed into law by Gov. Brian Schweitzer, the measure delineates the procedures that state officials should follow if either company wanted to go for-profit and specifies that the state can reject a conversion bid if it is likely to adversely affect the availability or accessibility of either health care services or insurance coverage.
The Blues plan discussed converting to for-profit status three years ago but has not brought up the issue recently.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2005/04/11/bibf0411.htm.
