Home

Legislative Memo

518.465.7517

BILL:

S.2811

  Support

SUBJECT:

Not-for-profit conversion process

 

DATE:

June 5, 2001

 

The Business Council supports S. 2811, a bill to amend the insurance law to allow not-for-profit health organizations to convert to for-profit status. We support this bill for a number of reasons:

Current regulatory construct: Empire Blue Cross and Blue Shield has been through a lengthy review process. It has appeared before numerous public hearings and has been very forthcoming with information important to their restructuring plans. On December 29, 1999 they received the written approval of the Superintendent of Insurance to proceed, but have been impeded due to a question of statutory authority.

Conclusion: The Business Council has carefully reviewed a wide-range of documents dealing with Empire's proposed conversion and conclude that conversion is in the best interests of their customers, potential customers and the state as a whole. We would ask the Legislature to act on this legislation without further delay.