Delaware Attorney General Beau Biden has submitted a request for detailed information from BlueCross – BlueShield of Delaware and Highmark Inc. on their proposed transaction.
BCBSD and Highmark announced an affiliation in August which followed BlueCross’ four-year strategic planning process. Officials with the health care provider said at the time that the affiliation would allow BlueCross-BlueShield of Delaware to retain its not-for-profit status, enhance its operations, maintain financial stability and continue to provide the “high level of service that our customers and our providers expect.”
The Attorney General has a common law responsibility to review proposed changes to non-profit organizations in the state. Biden is seeking to have questions answered about the quality and cost of care beneficiaries would receive, as well as the disposition of the not-for-profit’s cash reserves.
Among his concerns, Biden seeks documents related to the use of cash reserves, and a full explanation of BCBSD’s contention that it is too small as a stand-alone to function in the current health insurance market.
“We will ensure that all the necessary questions are asked and answered before this transaction proceeds,” Biden said. “The answers we requested will help us get the information my office needs, the law requires, and the public deserves.”
In a statement, BlueCross-BlueShield of Delaware said it is reviewing the request, and “remains committed to working with Attorney General Biden and his staff during the regulatory review process for the proposed affiliation.”