Content area
Full Text
The state's largest health insurer is about to take its proposal to become a for-profit company into the public arena, where a vigorous debate is likely.
In public hearings beginning Sept. 30, Premera Blue Cross will lay out its plan for converting to a publicly traded company. If the conversions of nonprofit health plans in other states are any guide, the public meetings convened by state regulators will raise a host of issues.
But, if regulators do approve the transformation, Premera could begin to change quickly.
CEO Brereton "Gubby" Barlow said the Mountlake Terracebased company plans to raise $100 million to $150 million by selling shares to investors through Goldman Sachs & Co., already retained as Premera's investment banker.
And the foundation proposed as the initial owner of all of Premera's stock will be required to reduce its holdings by at least 20 percent in the first year, and by 50 percent within three years, putting the company firmly in Wall Street's grip.
State Insurance Commissioner Mike Kreidler could make his decision on the conversion as early as December, said a spokeswoman. Before reaching that point, however, there will be four public hearings called by Kreidler and Attorney General Christine Gregoire, beginning Sept. 30 in Seattle; a report by investment bankers and actuaries, expected around Nov. 1; and probably another set of public hearings that month.
Premera officials say they've learned from the battles fought in other states and have crafted their proposal accordingly.
Nonetheless, issues raised elsewhere are likely to be repeated here.
* Dollar value. By turning all of Premera's initial stock over to a foundation whose assets will fund health-care initiatives, company officials hope to avoid debates over how much Premera is worth....