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Catania Introduces Bill Prohibiting Carefirst Conversion To For-Profit |
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WASHINGTON DC..Tuesday, Councilmember David A. Catania (At-Large) introduced legislation to prohibit the District's nonprofit subsidiary of CareFirst, Inc. from converting to a for-profit entity. The Act states that Blue Cross/Blue Shield of the National Capital Area, the subsidiary of CareFirst, Inc., shall not convert to a for-profit insurance company and still retain the license or authority to do business in the District of Columbia.
“The conversion of CareFirst from non-profit to for-profit could have profound negative consequences on healthcare in the District,“ said Catania. The legislation was prompted by the proposed purchase of CareFirst BlueCross/BlueShield by Wellpoint Health Networks Inc. of California. According to CareFirst, the insurer covers 135,438 District residents, working for both small and large employers and seniors under Medicare supplemental products, and serves 3.1 million members in D.C., Maryland and Delaware combined. CareFirst would convert from a non-profit to a for-profit organization. Several community groups such as CareFirst Watch Coalition have expressed concern over the transaction, and have called for the District Council to pass legislation restricting the take-over. The “Blue Cross/Blue Shield of the National Capitol Area Conversion, Aquisition, or Merger Prohibition Amendment Act of 2003“ was referred to the Committee on Consumer and Regulatory Affairs chaired by Councilmember Ambrose. |
