ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Saturday, January 13, 1996 TAG: 9602080001
SECTION: BUSINESS PAGE: A4 EDITION: METRO
DATELINE: RICHMOND
SOURCE: ASSOCIATED PRESS
The State Corporation Commission will hold a hearing May 6 on Trigon Blue Cross Blue Shield's plan to become a publicly held for-profit stock company.
Under an amended proposal filed this week with the SCC, Trigon would distribute stock to eligible policyholders, including 184,000 individuals and 15,700 groups.
Trigon also will distribute a special class of stock, valued at $159 million, to a charitable foundation set up by state officials to support higher education and medical research at Virginia's state-supported universities.
Trigon agreed in December to help start the foundation to win state Attorney General Jim Gilmore's support for its plan to change from a mutual insurance company, one that is owned by its policyholders.
The plan is subject to SCC approval after the hearing in Richmond and a vote by Trigon's nearly 1.8 million policyholders.
Trigon has been under scrutiny since a 1994 SCC order required it to refund up to $70 million to policyholders who had not received discounts the health insurance company had arranged with hospitals.
Trigon Chairman Norwood H. Davis Jr. said the company wants to sell stock so it can raise capital to compete with out-of-state insurers that are moving into Virginia.
``The massive consolidation of our industry continues at a rapid pace,'' he said. ``We are eager to be able to participate in these changes on a level playing field.''
LENGTH: Short : 39 linesby CNB