Attorney General Beau Biden says his office’s review of BlueCross BlueShield of Delaware’s proposed transaction with a Pennsylvania firm constitutes a “not-for-profit healthcare conversion transaction.” What does this mean?
Biden says he has informed BlueCross BlueShield of Delaware that a foundation would be created for the “public benefit asset” that accrued because of its favorable tax-exempt status. The foundation would ensure that the portion of BCBSD reserves accrued through its status would be used for the benefit of Delawareans. The AG’s office is still determining the amount to be set aside in such a foundation.
BCBSD, Delaware’s largest health insurer, announced an affiliation with Highmark Inc., based in Pittsburgh, last August in a partnership it said would bring new products and services to Delaware while improving the cost-effectiveness of both companies.
Delaware Insurance Commissioner Karen Weldin Stewart is also conducting a separate review of the proposed affiliation.
According to Biden, his office has an ongoing responsibility to examine the possible implications of the deal on the quality of care and level of service to BlueCross customers.
“We stand in the shoes of the citizens of Delaware,” Biden said in a statement, “and will continue to fulfill our responsibility to protect the public interest in our review of this proposed transaction.”