ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, August 15, 1996 TAG: 9608150043
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
DATELINE: RICHMOND
SOURCE: Associated Press
A consumer group intensified its criticism Wednesday of Trigon Blue Cross Blue Shield, which is seeking state approval to sell stock and become a for-profit company.
The Virginia Citizens Consumer Council said the health insurer's policyholders and the State Corporation Commission should look closely at Trigon's troubled record with consumers.
``They should consider the company's past record of unfair and deceptive practices in deciding whether Trigon should be permitted to convert from a nonprofit mutual company to for-profit status,'' the group said in a 10-page report.
Trigon spokeswoman Brooke Taylor called the report as ``a mishmash of old accusations.''
The consumer advocacy group's report cited Trigon's payment last year of $88.5 million, largely in refunds, for failing to pass on hospital discounts to the insured. Several large policyholders, including some Virginia cities and county governments, sued Trigon over the issue and have received or are negotiating out-of-court settlements for undisclosed amounts.
The report also cited numerous fines paid by Trigon to resolve claims that its advertising was misleading and a $525,000 fine to settle federal allegations of job discrimination at Trigon.
``We have long since taken action to address these issues. Everyone here has rededicated themselves to serving our customers in a fair manner,'' Taylor said.
``If one special interest group wants to continue to bring up things that already have been addressed in the media, there's no response for me to make to that.''
Jean Ann Fox, the consumer council's president, said the group wants to make sure that policyholders understand what they're voting on.
``This is the biggest insurance case that Virginia has heard and will hear for some time,'' Fox said.
Trigon is Virginia's largest health insurer with 1.8 million customers, or about 30 percent of the state's health insurance market. It also is one of the Roanoke Valley's largest employers, with about 800 workers in its units providing insurance for government employees and health care policies sold to individuals.
The company wants to convert from being a mutual company owned by its policyholders to a public company that would sell shares to outside investors. Trigon says going public would help it raise money it needs to stay competitive in the changing health-care marketplace.
About 200,000 Trigon policyholders are eligible to vote Sept. 6 on the conversion plan. If they approve the plan, public hearings will begin Sept. 9 before the three-member SCC, which has the final say over the conversion.
LENGTH: Medium: 57 linesby CNB