OIR Approves Florida Blue Reorganization with Conditions
The Florida Office of Insurance Organization has issued an order approving the reorganization plan of Blue Cross and Blue Shield of Florida, Inc. d/b/a Florida Blue subject to certain conditions. Florida Blue proposed to reorganize by creating a new not-for-profit mutual insurance holding company to be owned by Florida Blue’s policyholder-members. The new mutual insurance holding company is known as Guidewell Mutual Holding Company.
Florida Blue cited the need for increased flexibility under the Affordable Care Act and evolution of its mission into becoming a “health solutions company.”
The plan allows Florida Blue to reorganize under Guidewell, with policyholders who are members of the not-for-profit mutual insurance company known as Florida Blue controlling 100% of the new parent not-for-profit mutual insurance holding company.
The Office of Insurance Regulation affirmed certain understanding and imposed certain conditions on the reorganization. The approval does not provide for the demutualization of Florida Blue of the new parent— the organization will remain owned by its policyholder-members. The approval order also does not allow the sale of stock of Florida Blue or any newly created non-insurance stock company to investors outside of the group. The OIR also points out that executive compensation will not change as a result of the reorganization and the transaction will not change health insurance rates or coverages.
The plan is still subject toapproval of Florida Blue’s members. Florida Blue members will have an opportunity to vote on this transaction at the annual meeting tentatively scheduled for September 10th.
“This is an important decision” said Florida Insurance Commissioner Kevin McCarty. “Members should educate themselves on the details and exercise their right to vote on this transaction.”