Document {$docnum} : Docket No. 99-14 : Hearing Decision : Bureau of Insurance

STATE OF MAINE
DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
BUREAU OF INSURANCE

In Re: Application of Associated Hospital Service of Maine d/b/a Blue Cross and Blue Shield of Maine to convert to a Stock Insurer and Voluntarily Liquidate and Dissolve

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Certificate of Service

In Re:

Application of Anthem Health Plan of Maine, Inc. to Acquire the Assets of Associated Hospital Service of Maine d/b/a Blue Cross and Blue Shield of Maine and Related Transactions

Docket No. INS-99-14

(CONSOLIDATED)

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CERTIFICATE OF SERVICE

The above signed person hereby certifies that on February 18, 2000, he caused a copy of the following documents to be served by United States mail, first class postage prepaid, on each of the persons listed below.

James Zimpritch, Esq.

Judith Chamberlain, Esq.

Martin Robles, Esq.

William Laubenstein, Esq.

Gregory A. Brodek , Esq. (Maine Health Alliance)

Andrew B. MacLean, Esq. (Thomas D. Hayward, M.D., Maroulla S. Gleaton, M.D., and the Maine Medical Association)

Joseph P. Ditre, Esq. (Consumers for Affordable Health Care Foundation/Coalition)

John Kane, Esq. (Central Maine Healthcare Corporation)

Robert I. Goldman (Maine Council of Senior Citizens)

Bonnie Post (Sacopee Valley Health Center, Regional Medical Center at Lubec, Eastport Health Care, Inc. and the Maine Ambulatory Care Coalition)

John Dieffenbacher-Krall (Maine People’s Alliance)

Donald E. Quigley, Esq.

Kellie P. Miller, M.S., (Maine Osteopathic Association)

Sandra L. Parker, Esq., (Maine Hospital Association)

Edward F. Miller (American Lung Association of Maine)

Michel LaFond, Esq. (Maine Medical Association)

STATE OF MAINE
DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
BUREAU OF INSURANCE

In Re:

Application of Associated Hospital Service of Maine d/b/a Blue Cross and Blue Shield of Maine to convert to a Stock Insurerand Voluntarily Liquidate and Dissolve

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and

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Associated Hospital Services of Maine d/b/a/ Blue Cross Blue Shield of Maine’s Motion for Confidential Treatment of Portions of Responses and Documents Attached to BCBSME’s Response to Attorney General’s Third Request , and BCBSME’s Response to CAHC’s First and Second Requests

In Re:

Application of Anthem Health Plan of Maine, Inc. to Acquire the Assets of Associated Hospital Service of Maine d/b/a Blue Cross and Blue Shield of Maine and Related Transactions

Docket No. INS-99-14

(CONSOLIDATED)

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Pursuant to the Superintendent’s Protective Order of October 19, 1999, Applicants request confidential treatment for portions of BCBSME’s response to the Attorney General’s Third Request.

The information for which confidential treatment is sought is set forth below:

Attorney General’s Third Discovery Request
	Doc #’s	Item
	B 11452 – 11554	Valuation of 43% interest in the equity of Machigonne, Inc, as of 9/30/99
	B 11326 – 11327	Calculation of BCBSME compliance with BCBSA capital requirements
	B 11380 – 11425	Unaudited year end 1999 financial statements for BCBSME
	B 11144 – 11145	Administrative Expense Reconciliation prepared by Salomon Smith Barney
	B 11446 – 11451	DCF Methodology summary prepared by Salomon Smith Barney

BCBSME seeks confidential treatment for Item 1 because it contains non-public financial information and analysis of, as well as future projections for, Machigonne, Inc, and because, as set forth in the report (B 11453), the report may only be reviewed by enumerated persons, including relevant regulatory agencies, while access to other persons is conditioned on their providing the report author with appropriate specified waivers. For this reason, BCBSME has furnished this document only to the Attorney General, and seeks a supplemental protective order restricting such access until such time as intervenor’s furnish the requisite waiver to the author of the report.

Item 2, relating to BCBSA capital requirements, is intended by BCBSA and its licensee to be confidential.

Item 3 comprises unaudited and non-public year end 1999 information, showing much greater detail than statements which ultimately will be released to the public. In addition, because they are unaudited, they are subject to change.

Items 4 and 5 reflect and are based on financial projections of BCBSME into the future, which are not public and which have already received confidential treatment in this proceeding.

The information in the financial statements and calculations is competitively sensitive insofar as it includes future projections, calculations in relation to BCBSA capital adequacy standards, and detailed financial information about BCBSME and its subsidiaries.

Consumers First Discovery Request
Doc #’s	Item
1. B 11025 – 11045	BCBSME compliance evaluation by BCBSMA
2. B 11124 – 11128	Internal BCBSME manual regarding Medicare Secondary Payor procedure

Item 1 contains BCBSA’s private standards evaluation of BCBSME. BCBSA treats the details of such valuation as proprietary to it, and in deference to this practice, in the course of discovery BCBSME has requested confidential treatment for its capital benchmark calculations submitted to BCBSMA. The results of capital benchmark calculations appear on these evaluations.

Item 2 is an internal BCBSME manual for processing Medicare Secondary Payor matters. The manual describes a procedure internal to BlueCross that reflects a particular algorithm for addressing such situations. The algorithm reflects the experience and efforts of BCBSME employees. It not treated as confidential, a competitor gaining access to the manual would derive all of the benefits of the procedure without having expended the resources in developing it.

Consumer’s Second Discovery Request
	Doc #’s	Item
1.	B 11294	Enrollment projections through January 2000

Item 1 reflects preliminary projections of BCBSME enrollment by product category through January 2000. The information has not been made public by the Company at this time, and will be provided in aggregate form to the public only when the quarter is completed and the results are verified.

For these reasons, BCBSME request confidential treatment of the information.

Date: February 18, 2000

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Robert S. Frank

HARVEY & FRANK

Two City Center

Suite 402

Portland, Maine 04112-0126

(207) 775-1300

Attorneys for Blue Cross Blue Shield