October 18, 1999

 

 

 

Mr. Alessandro A. Iuppa, Superintendent of Insurance

c/o Lyndy Morgan

Docket No. INS-99-14

Maine Department of Professional and Financial Regulation

Bureau of Insurance

34 State House Station

Augusta, ME 04333-0334

Dear Mr. Iuppa:

Maine People’s Alliance (MPA) formally requests intervenor status as provided under 5 MRSA Section 9054(1) in the matter of the application of Associated Hospital Service of Maine d/b/a Blue Cross and Blue Shield of Maine, to convert to a stock insurer and voluntarily liquidate and dissolve, and the application of Anthem Health Plan of Maine, Inc., to acquire the assets of Associated Hospital Service of Maine, d/b/a Blue Cross and Blue Shield of Maine, and related transactions.

We have discussed the sale of BC/BS at board meetings held August 15 and October 17, 1999. The MPA state board, which is directly elected by the membership at an annual membership meeting, expressed deep concerns about the sale of BC/BS. The state board unanimously voted on October 17 to seek intervenor status.

The board voted to seek intervenor status based on our mission to involve citizens, especially low and moderate income people, in decision-making processes that directly affect their lives. Almost every one of MPA’s 16,000 dues-paying members will be substantially and directly affected should these applications be approved. Our members have multiple interests in this matter.

1. The possible loss of Maine’s largest non-profit insurer and the potential impact that BC/BS’s dissolution could have on the availability and cost of health insurance in general.
2. Whether the sale of BC/BS as proposed is fair and equitable to the people of Maine.
3. We question that the proposed purchase price for BC/BS represents the fair market value of the company.
4. For the MPA members directly insured through BC/BS, the impact the conversion could have on their premium rates, service, and future insurance offered.

At this point in time, we know of no other organization or person who could represent our interests in this proceeding based on the fact that we are the only organization that has publicly declared its opposition to this proposal. We believe that we represent a unique interest in this proceeding and respectfully request that you grant us full intervenor status.

Respectfully submitted,

 

John Dieffenbacher-Krall

Executive Director