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

 

MAINE MEDICAL center

APPLICATION TO INTERVENE

Maine Medical center ("MMC") is a nonprofit corporation organized under the laws of the State of Maine that operates a 608-bed, tertiary care hospital located in Portland, Maine. MMC owns fifty-percent (50%) of the outstanding stock in Maine Partners Health Plan, Inc. ("MPHP"). The primary purpose of MPHP is to offer managed care health plans that further the charitable purposes of its non-profit charitable shareholders. Associated Hospital Service of Maine, d/b/a Blue Cross and Blue Shield of Maine ("BCBSME") owns the remaining fifty-percent of MPHP.

Action Requested

Pending before the Superintendent of Insurance (the "Superintendent") is (a) the application filed by BCBSME seeking the Superintendent's approval of (i) the conversion of BCBSME to a domestic stock insurer; (ii) the liquidation and dissolution of BCBSME; and (iii) BCBSME's agreement 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"), to reinsure its business in force, and (b) 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. The Superintendent has consolidated applications of BCBSME, Anthem and Anthem BCBSME under Docket No. INS 99-14 (the "Proceeding").

MMC requests, pursuant to 5 M.R.S.A. §9054(1) and Bureau of Insurance Rule 350 § 9 (A)(1), that the Superintendent allow MMC to intervene as of right as a party to the Proceeding. In the alternative, MMC requests that the Superintendent permit it to intervene as an interested person and participate as a full party in the Proceeding under 5 M.R.S.A. § 9054(2). As shown below, MMC is or may be substantially and directly affected by the Proceeding and has an interest in the Proceeding.

MMC Is or May Be Substantially and Directly Affected by the Proceeding

and Has an Interest in the Proceeding

MMC is or may be substantially and directly affected by the Proceeding and has an interest in the Proceeding because the outcome of the Proceeding will substantially and directly affect MMC's interest in MPHP. 5 MRSA §9054(1) directs the Superintendent to allow any person "showing that he is [or] may be . . . substantially and directly affected by the proceeding . . . to intervene as a party to the proceeding." MMC will be substantially and directly affected for the following reasons:

• The Superintendent's approval of the applications of Anthem, Anthem BCBSME, and BCBSME may result in the transfer of BCBSME's stock in MPHP to Anthem BCBSME, unless MMC exercises its right to purchase BCBSME's stock in MPHP. As a holder of fifty percent of the stock of MPHP, Anthem BCBSME would have significant influence over the governance and operation of MPHP through shareholder voting rights and the election of directors. Anthem BCBSME’s ownership of half of MPHP would therefore substantially and directly affect MMC as an owner of MPHP.
• The Proceeding may consider and evaluate the proposed change of ownership of MPHP through Anthem BCBSME’s acquisition of fifty percent of MPHP’s stock. MMC would assert that it is a necessary party to any proceeding that would consider or evaluate a change of ownership of MPHP.
• MPHP currently has a contract with BCBSME pursuant to which BCBSME provides administrative and managerial services to MPHP. If the Superintendent approves the pending applications, and Anthem BCBSME acquires and takes over the operations of BCBSME, MMC will have to decide whether to support the continuation of the arrangement for the provision of administrative and managerial services by Anthem BCBSME. Changes in the provision of administrative and management services to MPHP would substantially and directly affect the administration and management of MPHP and therefore substantially and directly affect MMC as an owner of MPHP.

For the foregoing reasons, MMC is or may be substantially and directly affected by the Proceeding and has a substantial interest in it. Allowing MMC to intervene as a party to the Proceeding will assure that MMC's interests are protected and provide MMC with the information necessary to assess whether the proposed transaction will be favorable or unfavorable to its long term interests. Accordingly, MMC requests that the Superintendent issue an order allowing MMC to intervene as of right as a party to the Proceeding pursuant to 5 M.R.S.A. § 9054(1) or, in the alternative, allowing MMC 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: December 7, 1999.                                                            Respectfully Submitted,

MAINE MEDICAL center

 

By: ___________________________

Donald E. Quigley, Esq.

General Counsel

465 Congress Street, Suite 600

Portland, ME 04101-3537

(207) 775-7010

Attorney for Maine Medical center

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

 

INTERVENOR MAINE MEDICAL center

DESIGNATION OF PARTY TO BE SERVED

The party to be served on behalf of Maine Medical center is:

Donald E. Quigley, Esq.

General Counsel

465 Congress Street, Suite 600

Portland, ME 04101-3537

Phone: (207) 775-7010

Fax: (207) 775-7029

Email: quigld@mail.mmc.org

Dated: December 7, 1999.                                                 Respectfully Submitted,

MAINE MEDICAL center

By: ___________________________

Donald E. Quigley, Esq.

General Counsel

465 Congress Street, Suite 600

Portland, ME 04101-3537

(207) 775-7010

Attorney for Maine Medical center

 

 

 

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