Health care insurer CareFirst has asked the Delaware Supreme Court to overturn an order that dissolved its affiliation with Blue Cross Blue Shield of Delaware. CareFirst attorney Harding Drane Jr. maintained Insurance Commissioner Donna Lee Williams had no authority to dissolve the affiliation. He added Williams also had no substantial evidence before issuing her June 30 order that legislation enacted in Maryland in 2003 violated the terms of an affiliation order she approved four years ago. Maryland lawmakers took action against CareFirst after that state’s former insurance commissioner rejected the company’s proposed conversion to for-profit status and sale to a California insurer for more than $1 billion. The commissioner said the deal undervalued the company, was rife with conflicts of interest, and would have enriched executives by up to $119 million. In response, Maryland lawmakers passed legislation to lock CareFirst’s nonprofit mission into law and force out the existing Maryland directors on CareFirst’s board. Drane argued that the Maryland legislation did not result in any “structural” changes to CareFirst’s board that would have to be approved by Williams, but only “a change in identity.” CareFirst made similar arguments in Superior Court in October, but Judge Joseph Slights III affirmed Williams’ decision.
Topics Legislation Maryland
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