THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, February 16, 1996 TAG: 9602160521
SECTION: FRONT PAGE: A3 EDITION: FINAL
TYPE: General Assembly 1996
SOURCE: BY DAVID M. POOLE, STAFF WRITER
DATELINE: RICHMOND LENGTH: Medium: 75 lines
Trigon Blue Cross Blue Shield pushed its stock conversion plan through the House of Delegates on Thursday, despite Republican complaints that the bill shortchanges taxpayers.
The House vote was 55-39. The Senate is scheduled to take up an identical proposal today.
The Trigon bill is a study in power politics, with big payoffs to both the state's largest insurance company and to lawmakers strapped for cash to finance higher education.
Trigon would gain greater certainty that the State Corporation Commission will approve its application to become a for-profit stock company. Lawmakers would get an extra $175 million to make good on campaign promises.
``This money is needed for higher educational funding,'' said Norfolk Del. George H. Heilig Jr.
The House rejected two attempts to increase the state's share by as much as $60 million.
Trigon supporters warned that the company might withdraw its SCC application if the ante were raised.
It also would take money away from Trigon policyholders who stand to receive stock under the company's plan.
To drive home that point, each lawmaker received a computer printout listing every Trigon policyholder in his or her district.
Trigon has agreed to pay the money to repay the public for years of tax breaks that enabled the company to gain a 30 percent market share of its market in Virginia.
Most Republican lawmakers opposed the bill because it differed from an agreement negotiated by Attorney General James S. Gilmore III. That plan would preserve a portion of the Trigon money in a foundation, which would support health education and research.
Chesapeake Del. J. Randy Forbes said the bill conflicted with the General Assembly's traditional unwillingness to intervene in a legal case pending before the courts or the SCC.
Forbes wondered aloud whether lawmakers would look at the request differently if Trigon were not in a position to pay millions of dollars.
``There's no difference in the principle; we're just dickering on the price,'' he said.
Del. Glenn R. Croshaw of Virginia Beach responded that the Assembly has intervened in some legal disputes, most notably a Brunswick County Circuit Court case that would have blocked construction of the Lake Gaston pipeline.
In the Senate, lawmakers killed a bill ordering the state to stop using tax stamps on packs of cigarettes. Supporters said the measure would save more than $1.5 million, but opponents argued it would invite fraud.
``If we pass this, I think we're opening the flood gates,'' said Sen. Richard J. Holland, D-Isle of Wight. ``It will save money, but we will lose it tenfold if fraud gets involved.''
The Senate also passed a version of the proposed ``motor voter'' legislation that already had passed the House, sending the bill to Gov. George F. Allen for his approval.
The governor has promised to attach an emergency clause to the bill so it can be implemented by a March 6 deadline set by the federal government. The bill will allow Virginians to register to vote at the Department of Motor Vehicles and other state agencies. ILLUSTRATION: ASSOCIATED PRESS photo
As Del. John Watkins, a Chesterfield Republican, waits his turn in
the foreground, Chesapeake's J. Randy Forbes speaks on the Trigon
bill. Forbes wondered whether lawmakers would give it special
treatment because Trigon promises to kick in $175 million for higher
education.
KEYWORDS: GENERAL ASSEMBLY by CNB