ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, February 6, 1996 TAG: 9602060084
SECTION: VIRGINIA PAGE: C-4 EDITION: METRO
DATELINE: RICHMOND
SOURCE: DAVID M. POOLE STAFF WRITER
Trigon Blue Cross Blue Shield's request for General Assembly approval of its bid to become a for-profit stock company received a warm reception Monday before two committees.
Trigon officials announced that a change in accounting procedures meant the insurer would contribute $165 million - up from the previously announced $159 million - to help balance the state budget and to create a charitable foundation.
Lawmakers brushed aside complaints by consumer groups that Trigon owes the public more for tax breaks it enjoyed for 50 years. Rather, legislators were more concerned about finding a way to spend the entire $165 million during the 1996-98 state budget cycle.
Del. George Heilig, D-Norfolk, suggested the assembly leave only a token sum - perhaps as little as $100,000 - to the charitable foundation.
Deputy Attorney General Catherine C. Hammond argued against gutting the proposed foundation, saying it would serve two important purposes.
One, the foundation would appoint two people to the 18-member Trigon board to give the public some oversight of the company, she said.
Second, the foundation - with a $70 million endowment - could provide matching grants to the state's teaching universities and research laboratories.
Del. Alan Diamonstein, D-Newport News, replied that state colleges and universities have pressing financial needs in the coming biennium.
"They need money now to continue to exist," Diamonstein said.
Consumer advocates pleaded their case that Trigon pay more to the public and that the money be used for the state's unmet health care needs.
Jean Ann Fox, volunteer lobbyist for the Virginia Citizens Consumer Council, conceded that her pleas were falling on deaf ears because lawmakers can't wait to get their hands on the Trigon money.
"Still, I feel I have an obligation," she sighed, as she listened to the debate from the back of the committee room.
Trigon, the state's largest insurer, is seeking legislation that would lock into law key elements of its for-profit plan before the State Corporation Commission hears the case in May.
Trigon officials say they need the ability to sell stock for capital to expand in a fast-changing health industry.
In other action Monday:
In an 8-6 vote, a Senate committee endorsed a proposal by Gov. George Allen to reduce the amount of public participation in adopting new pollution permit regulations.
Environmental activists oppose the measure, saying citizens need more - not less - opportunity to comment on proposed regulation changes that would make it easier for dry cleaners and other small businesses to obtain discharge permits.
"Streamlining we're for. Steamrolling over the process we're not for," said Kay Slaughter, staff attorney for the Southern Environmental Law Center in Charlottesville, as she spoke before the Senate Agriculture, Conservation and Natural Resources Committee.
The bill, introduced by Democratic Sen. Virgil Goode of Rocky Mount, would exempt general permits for air and water from the citizen participation provisions of the state's Administrative Process Act.
The Senate gave preliminary approval to a bill that would ban casino gambling interests, including riverboat gambling, from contributing to campaigns for statewide office and the General Assembly.
Some information in this story came from The Associated Press.
LENGTH: Medium: 71 lines KEYWORDS: GENERAL ASSEMBLY 1996by CNB