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BUSINESSBill may jeopardize CareFirst's Blues licenseInvolvement by the Maryland government in picking plan board members could violate national Blues rules that licensees be free of influence of outside interests.By Robert Kazel, AMNews staff. May 5, 2003. An attempt by the state Legislature in Maryland to rein in CareFirst BlueCross BlueShield by changing the way its board is selected has prompted warnings from the national Blues association that it might pull the company's Blues license. The Maryland General Assembly on April 7 voted unanimously for a bill that attempts to reform CareFirst and prevent it from again seeking for-profit status. The bill would hasten changes in the composition of the CareFirst board by providing for the appointment of many of CareFirst's board members by state officials. But the national Blue Cross Blue Shield Assn. is worried that undue influence by a state government in the selection of a Blues plan's board is tantamount to control of the plan and runs counter to Blues interests. National Blues association rules require licensees such as CareFirst to be free of influence from outside special interests, which may include state governments. Maryland Gov. Robert L. Ehrlich Jr. has until May 22 to decide whether to sign the bill. CareFirst's board includes a majority of members representing Maryland and a smaller number from the two markets where CareFirst has subsidiaries, the District of Columbia and Delaware. The legislation would change the face of the board and increase the influence of Maryland government. It calls for a nominating committee selected by the governor, state Senate president and speaker of the state House to choose replacements for 10 of Maryland's 12 members on the CareFirst board this year. The other two Maryland members would be replaced in 2004 and would be selected by the full board. [...]Full text of AMNews content is available to AMA members and paid subscribers.
Copyright 2003 American Medical Association. All rights reserved.
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