ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, August 28, 1996 TAG: 9608280033
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
DATELINE: RICHMOND
SOURCE: Associated Press
A consumer group said Tuesday it will run radio ads urging Virginians to voice their concerns about Trigon Blue Cross Blue Shield's plan to become a for-profit insurance company.
The Virginia Citizens Consumer Council said it will run spots on 60 stations urging people to contact the State Corporation Commission, which has the final say on the Trigon proposal.
The Richmond-based health and hospital insurance carrier wants to change from a nonprofit company owned by its policyholders to a profit-motivated outfit owned by stockholders.
The council is particularly concerned about Trigon's agreement to pay the state $175 million to make up for tax breaks it received as a non-profit company.
``The $175 million is not earmarked for anything. We want people to think about that while they have a chance,'' said Jean Ann Fox, the council's president. She said the money should be put into a charitable trust and used for health care.
Trigon policyholders are to vote on the conversion plan Sept. 6. If they approve, the SCC will start public hearings on the plan Sept. 9.
``Only 15,000 institutional group policyholders get to vote and receive shares of stock, not the hundreds of thousands of Virginians who are covered by those policies, and that includes retired state workers,'' Fox said.
Trigon spokeswoman Brooke Taylor said the plan is fair.
``It seems to me our conversion plan must be fair and equitable because we've got some people criticizing the plan because we are giving too much to large group policyholders and others say the plan is providing too little to them,'' Taylor said.
Trigon carefully considered all the issues that have been raised for many months and cannot arbitrarily make changes at this point, Taylor said.
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