The bill includes provisions requiring the holding company to invest in entities that promote affordability or "contribute to the health needs of North Carolina residents." It also caps the amount of "admitted assets" the insurer can transfer to the holding company at 25%. While Blue Cross, a fully taxed nonprofit, says the reorganization would give it more flexibility to behave like its for-profit competitors, state Insurance Commissioner Mike Causey argues his department would not have ample oversight to make sure the holding company acts in the best interest of consumers. "And the main reason I'm supportive of the bill is because I think it helps level the playing field and allows them to compete on an even plane with other health care insurance providers." "At the present time, Blue Cross is operating at a disadvantage in the market," Senate leader Phil Berger said Tuesday after the vote. The changes would take effect as soon as it becomes law.
They could, for example, use those assets to purchase other companies and expand their services. If Cooper signs the bill or lets it become law without his signature, Blue Cross and Delta Dental will be able to move money, property and other investments from their existing hospital service companies to new shell companies run by the same executive leadership. Roy Cooper, who will review the legislation, a spokesperson said. Shepherded through the legislature by Republicans and one top Democrat, the bill now heads to the desk of Democratic Gov. The measure, which permits Blue Cross and Blue Shield of North Carolina and a dental insurance provider to transfer assets into a parent holding company, cleared the Senate 41-5 Tuesday after passing the House with similar bipartisan support earlier this year.
The North Carolina legislature gave final approval Tuesday to a bill allowing the state's leading health insurance provider to restructure despite criticisms from the state insurance commissioner that it would erode his regulatory authority and undermine his ability to protect consumers.
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