Bill resurrected to obtain money from health insurer

The Ways and Means Committee on Wednesday introduced AB685, aimed at Blue Cross-Blue Shield of Nevada. The Nevada company merged in 1996 with the Colorado Blue Cross-Blue Shield company. The Colorado company is now in the process of converting to a for-profit business.

If the conversion occurs, the value of the nonprofit company must be put in trust for use for health care. But supporters of the bill say that because Nevada's company merged with the Colorado company three years ago, Nevada may receive none of the value when the company becomes a for-profit business.

The bill introduced by the Assembly committee mirrors a measure introduced earlier this session in the Senate. SB12 passed the Senate Commerce and Labor Committee 4-3 but was left to die in the Senate on April 9, the deadline for action on the measure.

The bill is being sought by Jon Sasser, representing Nevada Legal Services, and others representing Nevada nonprofit groups that could benefit from the funding.

"Only action by the 1999 Legislature will prevent Colorado citizens from being unjustly enriched at the expense of Nevadans," Sasser said in a briefing paper to lawmakers.

The bill is opposed by Jim Wadhams, lobbyist for Blue Cross-Blue Shield of Nevada.

The bill would require the attorney general to review the value of the company, now based in Colorado but still doing business in Nevada, to determine what portion is the result of Nevada operations. This amount would have to be paid to the state if the company wanted to continue to do business in Nevada as a for-profit company.

Sasser said estimates of the state's share of the value of the company that could come to Nevada through the legislation ranges from $8 million to $28 million. When the merger with the Colorado company was approved by the Division of Insurance in 1996, the company provided $1.5 million to a nonprofit foundation for health care in Nevada in what was described as a goodwill gesture.

Wadhams, who successfully killed the Senate measure, said the bill has many serious flaws. If Nevada wants a share of the value of the now merged company when it becomes a for-profit, state officials should seek the money in a lawsuit in Colorado where the company is now based, he said.

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