Blues plans throughout the country seek for-profit harmony

Conversion plans heat up in the Northwest and Mid-Atlantic regions.

By Cheryl Jackson, AMNews staff. Oct. 14, 2002.

There's a lot of talk about Blue Cross Blue Shield affiliates converting to for-profit status.

One of the latest pushes is coming out of the state of Washington, where Premera Blue Cross is seeking conversion from a nonprofit company.

The Washington Office of the Insurance Commissioner began a series of town meetings to discuss the Premera Blue Cross conversion. The four-meeting series began Sept. 30 in Seattle and concludes in Vancouver Oct. 15.

In August the Washington State Medical Assn. took a position against the conversion, saying it has seen no evidence from other states where conversion has benefited doctors, subscribers, patients or hospitals.

"We have anecdotal evidence that physicians at hospitals in states where conversions have taken place have been hurt, said Graham Short, spokesman for the Washington State Medical Assn. "We're in the process of researching that out. We're concerned that this is on the fast track."

Doctors in the state are concerned that a for-profit will lead to lower reimbursements. And they fear the plan being bought.

"It's not the next move on the chessboard. It's the move after that that is a concern," Short said.

"Premera has worked hard to build a good relationship with the physicians and the community. These are honorable businessmen and businesswomen," he said. "Our concern has focused on the downstream impact, not in their motivation."

Premera, based in Mountlake Terrace, Wash., would need approval from regulators in Alaska and Oregon, where the company also operates. [...]