Maryland Lawmakers Expected to Consider Measures to Help Underinsured Following CareFirst Conversion Announcement

Maryland legislators are planning to introduce bills in the next General Assembly session to bolster the state's protection of its "underinsured," an issue receiving more concern in the wake of CareFirst Blue Cross Blue Shield's announcement that it intends to convert to a for-profit company, the Baltimore Business Journal reports. The insurer announced in November its plan to be acquired by publicly traded WellPoint Health Networks in a $1.3 billion deal, which must still be approved by regulators in Maryland, Delaware and Washington, D.C. If the conversion is approved, CareFirst will "shed" its status as an "insurer of last resort." According to the Journal, many state House members are in favor of creating a trust fund with the money received from the sale to ultimately fund establishment of a new not-for-profit venture to cover the uninsured. Other lawmakers propose giving the money to the Maryland Health Care Foundation to support state-run health programs. In addition, Sen. Robert Neall (D) has proposed legislation that would provide tax-exempt capital to not-for-profit insurers who agree to cover the state's underinsured. The Journal reports that although legislators said they had been working on such proposals prior to CareFirst's announcement, they feel "greater attention" will be paid to their efforts because of the "current instability" in Maryland's insurance market (Graham, Baltimore Business Journal, 12/14).