ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Friday, February 16, 1996 TAG: 9602160028
SECTION: VIRGINIA PAGE: C-1 EDITION: METRO
DATELINE: RICHMOND
SOURCE: DAVID M. POOLE STAFF WRITER
Trigon Blue Cross Blue Shield pushed its stock-conversion plan through the House of Delegates on Thursday, despite Republican complaints that the bill shortchanged taxpayers.
The House vote was 55-39. The Senate is scheduled to take up an identical proposal today.
The Trigon bill is a study in power politics, with big payoffs both to the state's largest insurance company and to state coffers.
Trigon would gain greater certainty that the State Corporation Commission will approve its application to become a for-profit stock company. Lawmakers would get an extra $175 million to use in the state budget to make good on campaign promises.
"This money is needed for higher educational funding," said Del. George Heilig, D-Norfolk.
The House rejected two attempts to increase the state's share by as much as $60 million.
Trigon supporters warned that the company might withdraw its SCC application if the ante were raised. It also would take money away from Trigon policyholders who stand to receive stock under the company's plan.
To drive that point home, lawmakers received computer printouts listing every Trigon policyholder in their district. That printout prompted Del. Morgan Griffith, R-Salem, to abstain when he noticed that one of the policyholders is Salem Bank & Trust; Griffith is on the bank's board of directors. After he abstained, he also noticed his mother is due several shares.
House Majority Leader Richard Cranwell, D-Vinton, also abstained because he has represented Trigon in legal matters.
Trigon has agreed to repay the public for years of tax breaks that enabled the company to gain a 30-percent market share in Virginia.
Most Republican lawmakers opposed the bill because it differed from an agreement negotiated by Attorney General Jim Gilmore. That plan would preserve a portion of the Trigon money in a foundation, which would support health education and research.
Del. Randy Forbes, R-Chesapeake, said the bill conflicted with the General Assembly's traditional unwillingness to intervene in a legal case pending before the courts or the SCC.
Forbes wondered aloud whether lawmakers would look differently at the request if Trigon were not in a position to pay millions of dollars.
"There's no difference in the principle; we're just dickering on the price," he said.
Del. Glenn Croshaw, D-Virginia Beach, responded that the assembly has intervened in some legal disputes, most notably a Brunswick County Circuit Court case that would have blocked construction of the Lake Gaston pipeline.
HOW THEY VOTED
On Trigon's bid to become a for-profit stock company, while paying $175 million to the state|
Ward Armstrong, D-Henry County|No
Tommy Baker, R-Pulaski County|Yes
Richard Cranwell, D-Vinton|Abstained
Creigh Deeds, D-Warm Springs|Yes
Allen Dudley, R-Rocky Mount|No
Morgan Griffith, R-Salem|Abstained
Tom Jackson, D-Hillsville|Yes
Lacey Putney, I-Bedford|Yes
Roscoe Reynolds, D-Henry County|No
Jim Shuler, D-Blacksburg|Yes
Vic Thomas, D-Roanoke|Yes
Clifton "Chip" Woodrum, D-Roanoke|Yes
LENGTH: Medium: 86 lines KEYWORDS: GENERAL ASSEMBLY 1996by CNB