Attorney General Biden Statement on Approval of BlueCross BlueShield Delaware-Highmark, Inc. Affiliation

WILMINGTON — Delaware Attorney General Beau Biden released the following statement today regarding the Delaware Department of Insurance’s approval of the proposed affiliation between BlueCross BlueShield Delaware and Highmark, Inc., which is based in Pittsburgh, Pennsylvania.
 
“This affiliation is a bad deal for Delawareans and should not have been approved. BlueCross Shield of Delaware has a veritable monopoly on healthcare in our state, covering approximately 400,000 Delawareans.  Delawareans’ healthcare will be run out of Pittsburgh, Pennsylvania. Executives in Pittsburgh will determine the cost and quality of the health care Delawareans receive. Delaware granted tax breaks to BCBSD for 75 years. Now BCBSD is taking the $45 million in reserves it accumulated as a result of that subsidy to Pennsylvania. The Insurance Commissioner should have at least required that an independent foundation, not one controlled by BCBSD and Highmark, be established to ensure that the $45 million in reserves stay in Delaware for the benefit of Delawareans.”
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Insurance Commissioner Karen Weldin Stewart Announces BCBSD and Highmark Affiliation Decision

Commissioner Stewart at the BCBSD Highmark Affiliation News ConferenceDover, DE – Insurance Commissioner Karen Weldin Stewart has approved the proposed affiliation of Blue Cross Blue Shield of Delaware with Highmark, Inc., of Pennsylvania. Commissioner Stewart imposed 49 Conditions on the transaction, which added many protections not included when the application was first filed with her Department in October, 2010. Many of the conditions were included in the findings and recommendation to Commissioner Stewart by Judge Battle R. Robinson, who acted as Hearing Officer. In November, Judge Robinson announced her findings, recommending that Stewart approve the transaction.

Under the arrangement as approved, Blue Cross Blue Shield of Delaware will remain a separate, Delaware based, non-profit health service corporation, with its corporate office and most of its Delaware functions and character to be maintained. Under the arrangement, Blue Cross Blue Shield of Delaware will share in the financial strength and administrative functions of the much larger Highmark. The Conditions that accompanied the approval meet a variety of concerns that became evident in the fourteen (14) month process of analysis and public hearings that preceded today’s decision.

Commissioner Stewart stated: “With these protections, I find that the affiliation should go forward and I hereby approved the application early this morning. I am confident that this affiliation will prove to be in the best interests of Blue Cross Blue Shield of Delaware and its subscribers.”

At today’s press conference in connection with the announcement of her decision, Commissioner Stewart elaborated on her concerns for the Delaware Company and its subscribers, and for other citizens of Delaware, as the health care insurance markets change in the future: “I have watched with great concern as Blue Cross Blue Shield of Delaware and other small health insurers have struggled to compete with large national insurers who have billions of dollars of capital and resources. These small companies have limited ability to make the changes required by today’s health care reform.” Stewart agreed with the Delaware Company that it will benefit from the following advantages of the affiliation: expanded research and development of new products, prompt payment of claims, enhanced technology interface, regulatory compliance improvements, and immediate access to professional expertise.

Commissioner Stewart stated, “I am also very concerned for the many people who do not have health insurance, and the difficulties that this tragedy imposes on them, and on the entire health delivery system. As part of my approval, I have imposed certain conditions to help with this concern.”

With the conditions, Commissioner Stewart addressed the following:

  • BCBSD will remain in Delaware. Its corporate office will stay here and the people that Delaware subscribers interact with will be here. Employment in Delaware will be continued.
  • The Board of Directors will include independent Delaware residents who have lived in Delaware for at least five years and are not employees of BCBSD, Highmark, or any of its affiliates. This important class of independent directors will have substantial influence over the operations of the company.
  • The assets and reserves of BCBSD will be fully protected and can be used only for the benefit of Blue Cross Blue Shield of Delaware or its subscribers.
  • The important community contributions that BCBSD has made in the past will continue; indeed, in many cases they will be expanded.
  • All operations will remain under the direct regulatory control of the Delaware Insurance Department.

Commissioner Stewart also approved an additional condition last night to make Delaware’s Children’s Health Insurance Program (CHIP) affordable to families slightly above the federal poverty level. BCBSD has agreed to add $3 million dollars to their commitment to subsidize the CHIP program until June 30, 2014, or until the federal program goes into effect, whichever occurs first.

To obtain a copy of Commissioner Stewart’s Decision and Final Order and a copy of her press conference statement*, visit the Delaware Department of Insurance’s website at http://www.delawareinsurance.gov/.

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* Commissioner Stewart’s Decision and Final Order and Statement


Governor’s Weekly Message: Happy New Year

(DOVER, DE) In his weekly message, Governor Markell says the new year gives us a chance to make some new resolutions, both personal and shared. The Governor shares some of his…

“Some of my personal resolutions are the kind I’m sure I share with many Delawareans such as my resolution to work off all those amazing cookies and slices of pie that seem to pop up between Thanksgiving and New Year’s. But some shared resolutions we can make together to try and help all Delawareans… like resolving to keep job creation our top priority; to fight to bring new jobs to our state and to help existing employers expand the number of Delawareans on their payrolls,” said the Governor. “We need to keep supporting our state’s small businesses, helping entrepreneurs turn innovations into jobs. And, we resolve to continue our efforts to make our public schools stronger; to work together with teachers, parents, students and the companies that will someday hire them; to ensure that kids graduate our schools ready to compete and win against students from all over the world. We resolve to remain sound stewards of our state’s resources, aligning our budget priorities with our state’s needs and commitments. We resolve to support our communities by spending time volunteering and learn from one another; to recognize that the areas where we’ll find agreement are so much greater than the areas where we’ll find conflict.”

“I think 2012 will be a more successful year if we keep these resolutions together,” said the Governor. “I look forward to working with you as we resolve together to keep Delaware moving forward.”

About the Governor’s Weekly Message:

At noon every Friday, the Governor’s office releases a new Weekly Message in video, audio, and transcript form. The message is available on:

YouTube: http://www.youtube.com/GovernorMarkell
Delaware.Gov: http://governor.delaware.gov/information/podcast_video.shtml
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Transcript of the Governor’s Weekly Message: Happy New Year


Governor’s Weekly Message Transcript: Happy New Year

The holidays are a time for serious celebrations, and the start of the New Year is a time to get seriously focused. While many times during the last year tested our resolve, this weekend gives us a chance to make some new resolutions.

Some of my personal resolutions are the kind I’m sure I share with many Delawareans – like my resolution to work off all those amazing cookies and slices of pie that seem to pop up between Thanksgiving and New Year’s. But some shared resolutions we can make together to try and help all Delawareans. For example, resolving to keep job creation our top priority – to fight to bring new jobs to our state – and to help existing employers expand the number of Delawareans on their payrolls. And we need to keep supporting our state’s small businesses, helping entrepreneurs turn innovations into jobs.

We resolve to continue our efforts to make our public schools stronger – to work together with teachers, parents, students and the companies that will someday hire them – to ensure that kids graduate our schools ready to compete and win against students from all over the world. We resolve to remain sound stewards of our state’s resources, aligning our budget priorities with our state’s needs and commitments. We resolve to support our communities by spending time volunteering and learn from one another, to recognize that the areas where we’ll find agreement are so much greater than the areas where we’ll find conflict.

We’ll continue our resolve to work WITH each other and fight FOR things that matter rather than fight AGAINST each other. We may not be able to control some of the issues with the national and international economy – but we can control how we react to it, and I think 2012 will be a more successful year if we keep these resolutions together.

I look forward to working with you as we resolve together to keep Delaware moving forward.


New Online Photo Collection Provides Glimpses into Delaware’s Past

Over 2,000 images of Delaware life in the 1920s and 1930s are now only a couple of clicks away, thanks to an initiative by the Delaware Public Archives (DPA) to digitize its entire Board of Agriculture glass negative collection. This collection includes much more than just agricultural photos, however. By visiting de.gov/deagphotos, you can also view photos of people, schools, factories, automobiles, popular attractions and historic sites throughout the First State. The Board of Agriculture collection is critical because there is little photographic documentation of Delaware during this particular era.

The online home for this collection of photos is the Delaware Heritage Collection, which was established under the auspices of the Delaware Division of Libraries in late 2010 for the purpose of making digital images of interest to the public more readily available. To date, the vast majority of the 10,000 images accessible through the Delaware Heritage Collection have been provided by the Delaware Public Archives.

The addition of these materials compliments other DPA contributions on the Delaware Heritage Collection site, such as the Jackson and Sharp Railroad and Ship Collection of photographs, American Civil War materials, and the Archives’ collection of World War II photographs. The site also features scanned images of the complete Laws of Delaware, beginning with the first volume published in 1797.

The Delaware Public Archives (http://archives.delaware.gov) is one of the oldest public archives programs in the United States. It serves the citizens of Delaware by identifying, collecting, and preserving public records of enduring historical and evidential value; ensuring access to public records for present and future generations; and advising and educating interested parties in the creation, management, use, and preservation of public records.