Document 42 : Docket No. 99-14 : Hearing Decision : 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	)	REPLY TO
Dissolve	)	ASSOCIATED HOSPITAL
	)	SERVICE OF MAINE &
and	)	ANTHEM HEALTH PLAN OF
	)	MAINE, INC.'S RESPONSE
APPLICATION OF ANTHEM	)	TO PENDING MOTIONS
HEALTH PLAN OF MAINE, INC.,	)	TO INTERVENE
TO ACQUIRE THE ASSETS OF	)
ASSOCIATED HOSPITAL SERVICE	)
OF MAINE, d/b/a BLUE CROSS AND	)
BLUE SHIELD OF MAINE,	)
AND RELATED TRANSACTIONS	)
	)
Consolidated Docket No. INS-99-14	)

The Maine Health Alliance (hereinafter referred to as "MHA"), through its attorneys, Duane, Morris & Heckscher LLP, replies to Associated Hospital Service of Maine (hereinafter referred to as "BCBSME") and Anthem Health Plan of Maine, Inc.'s (hereinafter referred to as "Anthem") Response to Pending Motions to Intervene as follows:

1. MHA and 11 hospitals participating in MHA (hereinafter referred to as "MHA hospitals") will be substantially and directly affected by the pending proceeding in connection with the application of BCBSME to convert to a stock insurer, liquidate and dissolve, and the application of Anthem BCBSME to acquire assets of BCBSME for the following reasons:

a. Potential intervenors who seek to intervene as of right "must demonstrate that (1) they are within the class of persons whose interests [the relevant statutory sections, e.g., 24-A M.R.S.A. §§ 222 and 3476] seeks to protect and (2) the objectives of [the relevant statutory provisions] cannot be realized without their participation." Brink's, Inc. v. Maine Armored Car and Courier Serv., Inc., 423 A.2d 536, 538 (Me. 1980) (citing Central Maine Power Co. v. Public Utilities Comm'n, 382 A.2d 302, 312-14 (Me. 1978)). In Brink's Inc., the Supreme Judicial Court of Maine denied intervention to a contract carrier because the relevant statutory provision sought to protect the public interest and the interests of common carriers, and not contract carriers. Id.

b. Pursuant to 24-A M.R.S.A.§ 222(7)(A)(7), the Superintendent shall

approve a proposed acquisition of BCBSME by Anthem unless the Superintendent finds that "[t]he acquisition of control would tend to affect adversely the contractual obligations of the domestic insurer or its ability and tendency to render service in the future to its

will assume all obligations and liabilities of BCBSME, there can be no assurance until the final transaction has been approved that these "obligations and liabilities" will include BCBSME's contract with MHA and MHA hospitals. Thus, MHA and MHA hospitals are within the class whose interests 24-A M.R.S.A. § 222(7)(A)(7) seeks to protect.

2. If the Superintendent determines that MHA should not be allowed to intervene as of right, MHA requests that the Superintendent grant MHA permission to intervene as the facts alleged in MHA's Application, and Amended Application, for Intervention clearly substantiate MHA's and MHA hospitals' interest in this proceeding pursuant to 5 M.R.S.A. § 9054(1).

WHEREFORE, MHA requests that the Bureau of Insurance grant MHA's application for intervention as of right, and alternatively, MHA's application for permissive intervention.

Respectfully submitted,

Dated this 5th day of November, 1999. ________________________________

Gregory A. Brodek, Esq.

Emmy S. Monahan, Esq.

DUANE, MORRIS & HECKSCHER LLP

15 Columbia Street, Fourth Floor

Bangor, ME 04401

(207) 990-4800

Attorneys for The Maine Health Alliance

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