March 5, 2007

Premera concludes conversion request

The five-year quest by Premera Blue Cross to convert to for-profit status officially ended today when the Mountlake Terrace-based insurer announced that it was withdrawing its court appeal of Insurance Commissioner Mike Kreidler's decision to deny the conversion request.

Kreidler denied the company's conversion request in mid-2004, after a two-year application process that involved two rounds of state-wide public meetings, an official record of thousands of pages and an 11-day adjudicative hearing. That decision was appealed by the company, and Thurson County Superior Court certified the case for direct review by the state Court of Appeals, Division II in Tacoma.

The apellate court affirmed Krediler's decision. Premera then announced it would appeal to the Supreme Court, but ended that appeal with today's announcement.

The company reported to the Office of the Insurance Commissioner that it incurred $43.8 mllion in expenses pursuing the conversion request and appeals.

The following links provide access to much of the information that was filed and developed during the application process.

Commissioner Kreidler's reaction to Premera's decision to abandon the appeal

Commissioner Kreidler's decision denying the conversion (July 15, 2004):

http://www.insurance.wa.gov/special/premera/filing/Premera_30th_Order.pdf

News release:
http://www.insurance.wa.gov/news/dynamic/newsreleasedetail.asp?rcdNum=412

Questions and Answers:

http://www.insurance.wa.gov/special/premera/filing/QA_7-15-04fnl.pdf

Chronology of Premera's conversion request: http://www.insurance.wa.gov/special/premera/Premera_Timeline.pdf

	Holding Company Act for Health Care Service Contractors and HMOs
	Post Hearing Filings
	Post-hearing Briefs
	Pre-filed Direct Testimony
	Pre-filed Responsive Testimony
	Consultants' Reports on Premera's Conversion Request OIC Staff Expert Consultants' Final Reports Premera's Expert Consultant Final Reports Third Party Intervener's Expert Consultant Final Reports
	Public Hearings
	Adjudicative Hearing
	Submit Public Comments and/or Join our Distribution List
	Understanding the Internal Process
	News Releases
	Transcripts
	Legal Filings By Commissioner By Special Master By OIC Review Team By Premera By Interveners By Others
	Roles of OIC and AGO
	Premera Blue Cross' Application (original and amended) to a for profit company
	Expert Consultants
	Background and Other Information