MORE REVIEW OF R.I. BLUES OPPOSED:

Legislation to increase state oversight of Blue Cross & Blue Shield of Rhode Island would lead a national association to sever ties to the state’s largest insurer, the company said. Lawmakers have proposed publicly appointing nearly half of the nonprofit company’s directors. Other bills would prohibit compensation for Blue Cross board members and would create a position of health insurance administrator. The national Blue Cross Blue Shield Association said that if the bills become law, the nonprofit insurer would lose licenses to use brand marks and to participate in national Blue Cross programs. “Essentially, Blue Cross (of Rhode Island) would become a vehicle of state government, the precise situation the license agreements prohibit,” said Scott Serota, president of the Illinois-based association. Serota said that if the state insurer loses its Blue Cross licenses, more than 600,000 subscribers would lose access to out-of-state participating providers. The Rhode Island insurer would also face a termination fee of $15 million. The legislative proposals considered in the Senate Health and Human Service Committee followed mounting scrutiny of the company’s management. Blue Cross has been criticized for corporate perks, rising premiums and low payments to health care providers. The insurer’s chief executive resigned last month and its investment grade rating was downgraded.