THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Sunday, August 13, 1995 TAG: 9508130654
SECTION: LOCAL PAGE: B5 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: RICHMOND LENGTH: Medium: 56 lines
Attorney General James S. Gilmore III, who built his 1993 campaign largely on promises to crack down on street crime, has embarked on a different course in recent months by targeting a corporate giant.
All summer, Gilmore has fired away at what he considers deceptive billing practices of Trigon Blue Cross Blue Shield, the state's largest insurer. Although an investigation concluded without criminal charges, he is threatening to block the nonprofit company's attempt to convert to a for-profit business.
The battle has enabled Gilmore to step out of the shadow of Gov. George Allen, a fellow Republican, as he prepares for a likely run for governor in 1997. A political analyst says it is a winning strategy at a time when people distrust insurance companies and are concerned about rising health-care costs.
``People are talking about Gilmore,'' said William H. Wood, director of the Virginia Institute of Political Leadership at the University of Virginia. ``You thought he was this crime-fighting, law-and-order figure. Certainly this expands his field of operation. Even Democrats will tell you that he is having a great, great political summer.''
Gilmore denies that his crusade against Trigon is motivated by politics and suggests it could end up hurting him.
``If the business community is misled into thinking this is somehow a populist crusade, then that could be politically a down side,'' Gilmore said.
For years, Trigon billed customers for the full 20 percent co-payment on their medical bills even if the company discreetly got the total charge discounted. In some cases, patients were paying more than the final cost of their treatment, with Trigon pocketing the difference.
The company has changed its policies and in the last year paid nearly $28 million in fines and refunds.
``I see this as somewhat of an exceptional case and consistent with what I've tried to do in protecting the public,'' Gilmore said. ``When you see a company that's engaged in unlawful conduct, they should be held accountable just like anybody else would.''
Trigon, which tried unsuccessfully to muzzle a Gilmore report in court, now is saying little about its fight with the attorney general. ``I hope a lot of that's behind us,'' spokeswoman Brooke Taylor said.
Meanwhile, consumer advocates who were unsure what to think of Gilmore when he was elected now praise him for his commitment to the cause.
``Maybe it's like (former President) Nixon going to China,'' said Jean Ann Fox, president of the Virginia Citizens Consumer Council. ``Maybe only a conservative Republican law enforcement person can be seen as having a high profile on consumer protection.'' by CNB