An advisory opinion from the North Carolina attorney general's office is strengthening regulators' hand in overseeing the for-profit conversion of Blue Cross and Blue Shield of North Carolina. The attorney general's office said in a Feb. 18 letter to the state insurance commissioner that North Carolina's 1998 conversion law allows the commissioner to approve the deal with ongoing conditions. The commissioner's conditions must be within the scope of the law, and revoking the approval after conversion has occurred -- that is, forcing the converted Blues plan to revert to not-for-profit status -- cannot be a penalty for failure to comply, the opinion said. The North Carolina Blues submitted a revised conversion plan in July 2002, six months after its initial filing. -- by Vince Galloro
N.C. bid to regulate Blues conversion gets backing
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