ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, August 8, 1996 TAG: 9608080050
SECTION: BUSINESS PAGE: B-7 EDITION: METRO
DATELINE: RICHMOND
Trigon Blue Cross Blue Shield has netted $16 million since 1987 on an ``open enrollment'' program provided to uninsured people in exchange for a state tax break, a consumer watchdog group said this week.
But Trigon spokeswoman Brooke Taylor said the insurer didn't make money strictly on its open enrollment business. ``We paid out more in claims than we took in in premiums,'' she said, but gained from interest on money the company is required to hold in reserve to pay claims.
The open enrollment figure was released by the Virginia Citizens Consumer Council in advance of hearings that begin Sept. 9 on Trigon's application to convert from a mutual insurance company to a for-profit stock company.
``We are encouraging people to take advantage of the opportunity to speak up,'' said Jean Ann Fox, president of the council.
Trigon has said it needs the capital it can raise by selling stock to compete in the health-care market.
As the state's what it collects in health insurance premiums, except for 2.25 percent on accident and health insurance premiums for small groups. Other insurers pay 2.25 percent on all premiums.
Open enrollment subscribers are people who find it difficult or impossible to find insurance other than through Trigon.
- Associated Press
LENGTH: Short : 33 linesby CNB