Premera's proposal to convert to for-profit status rejected

[jono]

Premera's proposal to convert to for-profit status rejected

By Kyung M. Song
Seattle Times staff reporter
Thursday, July 15, 2004 - Page updated at 10:42 A.M.

Washington Insurance Commissioner Mike Kreidler today rejected Premera Blue Cross' proposal to convert to an investor-owned insurer, likely dealing a terminal blow to Premera's bruising two-year battle to shed its nonprofit status.
Kreidler's announcement at a Seattle hotel this morning came after consumers, doctors and hospitals vigorously opposed Premera's plan and two months after the insurance commissioner's own staff formally recommended rejecting it.

"I've reached my decision following a careful consideration of the law and all the evidence," Kreidler said this morning. "I'm confident it is a fair and just decision."

He said the move would have negatively affected policy holders and the public.

"I believe that for-profit status brings with it a high likelihood that Premera would be acquired by a national insurer," he said.

http://seattletimes.nwsource.com/html/businesstechnology/2001980227_webpremera15.html

[shoelace414]

1. and

"I believe that for-profit status brings with it a high likelihood that Premera would be acquired by a national insurer,"

why is this good?

[aquart]

2. It isn't. That's why it was rejected.

Premera seems to have been hoping to get out of non-profit, and then make a killing when it was acquired by a larger firm.