CareFirst Blue Cross severs ties with Delaware BCBS affiliate (9/22/2006)

Source: Baltimore Business Journal

CareFirst Blue Cross Blue Shield, Maryland's  largest health insurer, said Friday it has abandoned its long-running effort to keep its affiliated health plan in Delaware under the Carefirst umbrella.

The Owings Mills company said it decided not to appeal an Aug. 24 decision by Delaware Insurance Commissioner Matt Denn, who rejected the company's proposal to modify its relationship with Blue Cross and Blue Shield of Delaware Inc., which has been affiliated with CareFirst for six years.

The breakup will have no effect on existing members, doctors or insurance brokers. In a statement, CareFirst said it "remains a strong vibrant business organization" with nearly 3 million members in Maryland, Washington, D.C., and Virginia. The Delaware plan has nearly 384,000 members, about 300,000 of whom live in Delaware.

The companies said they were "cooperating on an orderly transition plan to formally end the affiliation."

The breakaway of the Delaware plan has its roots in CareFirst's proposal to convert to for-profit status and sell itself to a national health insurer, WellPoint Inc.

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