Colorado Demands Creation of Fund

Colorado Blue Cross and Blue Shield, which plans to convert from non-profit to for-profit status, has been ordered by the State of Colorado to create a foundation with proceeds from the conversion.

The order, issued last month by the Colorado Commissioner of Insurance, also calls for the establishment of a citizens’ advisory committee to nominate members of the new foundation’s board of directors.

The order is intended to insure that assets accumulated while Colorado Blue Cross operated as a non-profit organization will be used to benefit the public. It is in keeping with a law passed by the state legislature in 1996 that gave Blue Cross the green light to convert to a for-profit company.

The value of Colorado Blue Cross’s assets has not yet been determined, but it is believed to be at least $100-million and possibly much more.