PRINTER'S NO. 4095
No. 616 Session of 2002
INTRODUCED BY MELIO, BELARDI, BROWNE, CALTAGIRONE, DALEY,
DeLUCA, GEORGE, JAMES, KIRKLAND, READSHAW, SHANER, TIGUE,
J. WILLIAMS, G. WRIGHT, HARHAI, WASHINGTON, FREEMAN, GRUCELA,
JOSEPHS, MUNDY, SCRIMENTI, SURRA, VEON, WOJNAROSKI,
YOUNGBLOOD AND STEELMAN, JUNE 25, 2002
REFERRED TO COMMITTEE ON RULES, JUNE 25, 2002
A RESOLUTION
1 Directing the Joint State Government Commission to establish a
2 task force to study issues relating to the charitable assets
3 of nonprofit insurers.
4 WHEREAS, Since Blue Cross/Blue Shield plans were created more
5 than 70 years ago, they have been local, not-for-profit
6 companies; and
7 WHEREAS, The mission of these companies is to be "charitable
8 and benevolent" institutions, and as such, these companies hold
9 charitable assets; and
10 WHEREAS, Since the mid-1990s, Blue Cross/Blue Shield
11 companies increasingly have merged and converted to for-profit
12 and/or publicly traded companies; and
13 WHEREAS, Several out-of-State, for-profit, publicly traded
14 Blue Cross/Blue Shield companies have been purchasing and
15 amalgamating nonprofit Blue Cross/Blue Shield companies in 11
16 states and there is a potential for the buyout of Pennsylvania
17 Blue Cross/Blue Shield companies by these larger, for-profit,
1 out-of-State plans; and
2 WHEREAS, The conversion of these companies to for-profit
3 status has direct implications on the disposition of their
4 charitable assets; therefore be it
5 RESOLVED, That the House of Representatives direct the Joint
6 State Government Commission to develop a task force to study
7 issues relating to charitable assets of nonprofit insurers,
8 including, but not limited to:
9 (1) The actual dollar amount of charitable assets of
10 each nonprofit health insurer in this Commonwealth.
11 (2) The status of the conversion of the possibility for
12 conversion of each nonprofit health insurer in this
13 Commonwealth.
14 (3) The repercussions of the conversion of these
15 charitable assets on consumers, the residents of this
16 Commonwealth and the Commonwealth.
17 (4) What other states, particularly those in the same
18 region, have done, either by statute or regulation, regarding
19 the conversion of charitable assets;
20 and be it further
21 RESOLVED, That the task force be comprised of legislators,
22 representatives of State and local government, industry experts
23 and other individuals the task force deems appropriate; and be
24 it further
25 RESOLVED, That the task force report its findings and
26 recommendations no later than October 31, 2002, to the House of
27 Representatives.
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