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Maine.gov > PFR Home > Insurance Regulation> Administrative & Enforcement Actions > Document 79 : INS 99-14 : Hearing Decision
STATE OF MAINE
CENTRAL MAINE PARTNERS HEALTH PLAN, INC.
APPLICATION TO INTERVENE
Pending before the Superintendent of Insurance (the "Superintendent") is an application filed by Associated Hospital Service of Maine, d/b/a Blue Cross and Blue Shield of Maine ("BCBSME") seeking the Superintendent's approval of (i) the conversion of BCBSME to a domestic stock insurer; (ii) the voluntary liquidation and dissolution of BCBSME; and (iii) the reinsurance of BCBSME's business with Anthem Health Plan of Maine, Inc., d/b/a Anthem Blue Cross and Blue Shield of Maine ("Anthem BCBSME"), a subsidiary of Anthem Insurance Companies, Inc. ("Anthem"), and an application filed by Anthem and/or Anthem BCBSME seeking the Superintendent's approval of (i) the establishment of Anthem BCBSME as a Maine domestic stock health insurer and the issuance to it of a Certificate of Authority; and (ii) the acquisition by Anthem, through Anthem BCBSME, of the business and assets of BCBSME. Pursuant to 5 M.R.S.A. §9054(1) and Bureau of Insurance Rule 350 § 9 (A)(1), Central Maine Partners Health Plan, Inc. ("CMPHP") requests that the Superintendent issue an order allowing CMPHP to intervene as of right as a full party to the proceeding (the "Proceeding") involving the foregoing applications filed by BCBSME, Anthem, and Anthem BCBSME which have been consolidated under Docket No. INS 99-14. In the alternative, CMPHP requests that the Superintendent issue an order permitting it to intervene as an interested person to and to participate as a full party in such Proceeding under 5 M.R.S.A. § 9054(2). As shown below, CMPHP is or may be substantially and directly affected by the Proceeding and has an interest in the Proceeding.
CMPHP Is or May Be Substantially and Directly Affected by the Proceeding
and Has an Interest in the Proceeding
CMPHP is or may be substantially and directly affected by the Proceeding and has an interest in the Proceeding because the outcome of the Proceeding generally, and the approval by the Superintendent of the applications of Anthem, Anthem BCBSME and BCBSME specifically, will substantially and directly affect the ownership of CMPHP and will impact its future business operations. CMPHP is a health maintenance organization that is jointly owned and operated by Central Maine Healthcare Corporation ("CMHC") and BCBSME. Currently, BCBSME holds fifty percent (50%) of the outstanding stock of CMPHP. CMPHP would be substantially and directly affected by the Superintendent's approval of the applications of Anthem, Anthem BCBSME and BCBSME as follows:
The Superintendent's approval of the applications of Anthem, Anthem BCBSME, and BCBSME will result in the transfer of BCBSME's stock in CMPHP to Anthem BCBSME unless CMHC, which currently owns the remaining 50% of the stock of CMPHP, elects to exercise its right to purchase BCBSME's stock in CMPHP. Such a change in the ownership of CMPHP would substantially and directly affect the governance of CMPHP. As a holder of fifty percent (50%) of the stock of CMPHP, Anthem BCBSME would have significant influence over the governance and operation of CMPHP through shareholder voting rights and the election of directors.
In addition, the value and stability of CMPHP is highly dependent on the contractual and other relationships CMPHP has with BCBSME. CMPHP currently has a contract with BCBSME pursuant to which BCBSME provides substantial administrative and managerial services to CMPHP. If the Superintendent approves the applications of Anthem, Anthem BCBSME and BCBSME, and Anthem BCBSME acquires and takes over the operations of BCBSME, decisions will have to be made regarding the continuation of the arrangement for the provision of administrative and managerial services with Anthem BCBSME or another entity. Such a change in the provision of administrative and management services to CMPHP would substantially and directly affect the administration and management of CMPHP.
Finally, the application submitted by the applicant contemplates a change in the corporate purposes of CMPHP to remove any current restriction relating to CMPHP as a health insurance affiliate of BCBSME. Such a change may impact the manner in which CMPHP operates in the future.
For the foregoing reasons, CMPHP is or may be substantially and directly affected by the Proceeding and has a substantial interest in it. Allowing CMPHP to intervene as a party to the Proceeding is the only way to assure that CMPHP's interests are protected and to afford CMPHP access to necessary information to assess whether the proposed transaction will be favorable or unfavorable to CMPHP's long term interests and viability. Accordingly, CMPHP requests that the Superintendent issue an order allowing CMPHP to intervene as of right as a full party to the Proceeding pursuant to 5 M.R.S.A. § 9054(1) or, in the alternative, allowing CMPHP to intervene as an interested party and to participate as a full party to the Proceeding pursuant to 5 M.R.S.A. § 9054(2).
Dated: November 30, 1999. Respectfully Submitted,
CENTRAL MAINE PARTNERS HEALTH PLAN, INC.
Michele M. Garvin, Esq.
John C. Kane, Jr., Esq.
Attorneys for Central Maine Partners Health Plan, Inc.
ROPES & GRAY
One International Place
Boston, MA 02110
CERTIFICATE OF SERVICE
The undersigned hereby certifies that on November 30, 1999, a copy of Central Maine Partners Health Plan, Inc.'s Application to Intervene was served by United States mail, first class postage prepaid, on each of the persons listed below.
DATED: November 30, 1999
Last Updated: January 21, 2014
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