ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, February 29, 1996 TAG: 9602290061
SECTION: BUSINESS PAGE: B-7 EDITION: METRO
DATELINE: RICHMOND
Most Trigon Blue Cross Blue Shield customers responding to the insurer's invitation to write state regulators about its proposed conversion to a for-profit company oppose the change.
Of the 25 letters filed with the State Corporation Commission, 16 opposed Trigon's plan and nine backed it.
Some of those against the plan are members covered by group policies who are upset that they will not be entitled to shares in the company. Others said letting Trigon convert would reward a company that continues to increase its premiums.
Trigon has asked the SCC to let it convert from a mutual company owned by its policyholders to for-profit status, owned by shareowners, so it can raise money by selling shares to outside investors.
Most of the 1.8 million Virginians who have Trigon insurance cards are not entitled to shares, however.
The company said employers who buy group policies will get more than half the stock it distributes, after accounting for a $175 million payment to the state. Their employees do not get shares.
``The group is [the] legal policyholder,'' said Trigon spokeswoman Brooke Taylor. ``They are the ones with whom we have the contract, and they are the people who send us the check. Even though their employees pay, we have no way of knowing how much.''
The 184,000 individuals who would get stock are mainly owners of Medicare Supplement policies or people who bought policies through the Virginia Farm Bureau Federation. Altogether, they'll get about one-third of Trigon's stock.
About 13 percent of the stock would go to state and local governments, schools, libraries, churches and religious groups.
Taylor said federal employee benefits laws would govern how companies use their Trigon stock.
- Associated Press
LENGTH: Short : 43 linesby CNB