Insurer looks to become for-profit

Art Nadler

Tuesday, July 15, 1997 | 11:04 a.m.

Blue Cross and Blue Shield of Nevada may soon become a for-profit stock insurance company.

Blue Cross and Blue Shield of Colorado acquired the Nevada health insurance company in December. It is in the process of seeking conversion to for-profit status from the Colorado insurance commissioner.

Public hearings begin this month in Colorado. Because Blue Cross and Blue Shield is a foreign company in Nevada, only "public meetings" will be conducted in Las Vegas and Carson City in late August or early September regarding the conversion proposal. Approval by Nevada Insurance Commissioner Alice Molasky is not required.

Company executives said Nevada's 48,000 policyholders will not receive a premium increase, if Blue Cross and Blue Shield becomes for-profit.

"The benefit is that policyholders lose nothing," said Blair Christensen, regional vice president of Nevada. "This will give us access to the corporate market. We will be able to go out and sell stock to raise money."

Carl Miller, spokesman for Blue Cross and Blue Shield of Colorado, said once hearings are concluded in September, the Colorado insurance commissioner will have up to 60 days to approve or reject the conversion. He doesn't see any status change until next year.

"This is a win-win for everyone," Miller said. "The policyholders are ensured that they will have a much larger, financially secure company. This should improve service. It will allow us to provide more health-related information to doctors, so they can take better care of their patients."

Blue Cross and Blue Shield has been in Nevada for 28 years. Like all Blue Cross and Blue Shield franchises, it received no corporate financial support until the merger. It has since set aside $1.5 million for a foundation to provide health insurance for low-income children, who are not eligible for Medicaid.

Miller said notice of the public meeting will be published three times in Las Vegas and Carson City. He said the conversion will allow the company to remain independent.

"Colorado is a very strong company," Christensen said of the new partnership. "Mergers are going on all over the country. Prior to the merger, we were only a domestic corporation in Nevada. The only way we could have raised money was from raising premiums."

Christensen said policyholders will have the final say whether the merger and conversion to for-profit will sustain a high-level of care.

"Our customers vote every month with their premium checks," Christensen said. "They don't have to stay with us, if they are unhappy. There is nothing from prohibiting people looking for another provider."