NU Online News Service, Jan. 18, 3:15 p.m. – The North Carolina Department of Insurance has told Blue Cross Blue Shield of North Carolina, Chapel Hill, N.C., that its plan to convert to a for-profit company is incomplete.
The North Carolina department says the North Carolina Blue business plan, which is confidential, failed to include a premium rate analysis as required by state law. The plan also lacks details about how current North Carolina Blue subscribers would be protected after conversion, the North Carolina department says.
North Carolina Blue filed its conversion plan with the department Jan. 2. Under a 1998 law passed by the state General Assembly, the company would have to issue 100% of its stock to an independent, charitable foundation before it could convert.
Once the filing is completed, state law gives the North Carolina department 90 days to hold public hearings on the conversion. The department says it plans to hold hearings in Charlotte, Raleigh and Wilmington.