Newspapers / Philanthropy Journal of North … / March 1, 1998, edition 1 / Page 19
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Otis Continued from page 10 So, we support the development of clear guidelines on how conversion would occur if it became necessary for us to take that step for our cus tomers. Four guiding principles should govern a conversion. First, the people of North Carolina should share in the benefits of a con version. If Blue Cross and Blue Shield of North Carolina ever converts, we support the creation of one or more foundations, funded by stock at the time of conversion, for the charitable purpose of serving the health needs of North Carolinians. We recommend an approach simi lar to that used in California. There, two foundations were created to receive the value of the company in stock when a Blue plan converted. Those foundations today oversee grants to benefit the health needs of the people of that state. Second, any legislation governing conversion must protect the assets of Blue Cross and Blue Shield of North Carolina to pay our customers’ medi cal claims and keep the company financially strong. By protecting the company assets, we guard our cus tomers’ access to quality, affordable medical care. Third, any legislation must ensure that no one associated with the com pany profits from the process of con version. Fourth, any legislation must ensure that Blue Cross and Blue Shield of North Carolina maintains the business flexibility it needs to meet our customers’ needs and remain competitive in the health care market. We believe these four principles lay the foundation for legislation that will best serr^e the people of North Carolina and our policyholders. They clearly establish the framew'ork that would govern a conversion. Blue Cross and Blue Shield of North Carolina has had the legal ri^t to convert under state law since 1953. But we’ve never seen the need to exer cise that right. However, a few Blue plans in other states have converted in recent years. We beheve that fact, cou pled with the fact that there are no clear cut guidelines on the conversion issue, is what prompted this issue to be raised in North Carolina. We have studied the complex con version issues carefully Blue Cross and Blue Shield of North Carolina has made a comprehensive study on this issue. We held no preconceived notions of what rules should govern a conversion other than the fact that any guidelines must be fair to the people of North Carolina and protect our customers and the long-term health of the company. A strong Blue Cross is in every one’s best interest. More than 1.6 mil lion North Carolinians depend on Blue Cross and Blue Shield of North Carolina for their health insurance. We provide competitive pay and top benefits to more than 2,600 employ ees. On average, we pay nearly $14 million in federal, state and local taxes each year. While we have no plans to convert our company, changes in how people receive health care may mean we need to do so in the future. So, we will work with the General Assembly on incorporating these four principles In guidelines developed for converting. At Blue Cross and Blue Shield of North Carolina, we put the people we serve first. For 65 years, we’ve pro vided North Carolinians in all 100 counties with access to quality, affordable health care coverage. We want to be here for at least another 65 years serving the people of this state. Eakes Continued from page 10 years to raise capital for the founda tion’s endowment fund. The founda tion’s board of directors must be free to sell this stock as it deems appro priate to maximize its value. This decision must be made independent of the business interests of the for- profit Blue Cross. If le^slation specifies the purpose of the new foundation, this mission should be broad enough to last a cen tury or more: “to make grants that promote the health of the people of North Carolina.” Given the rapid evo lution of health care which is occur ring today, who can predict now exactly what role the foundation should play in 20 years? In this and other instances, the specific language of the legislation recommended by the Legislative Study Commission will be crucial. How the conversion foundation is Change Continued from page 10 by aE Americans, Bradley said. And while people are working harder, they’re earning less. What’s more, our civic fabric is being ripped apart. Pohtics is driven by “too much money” The media do not “create a context for us to think about the future.” People in pubUc life often “fail to lead from their core con victions.” And Americans increasing ly are reluctant to participate In the political process. “We’re better than this,” Bradley said. “We think about politics In too narrow a context.” The context in which we must work to make a difference, he said, is the intersection of business, govern ment and “civil society” — that space in which we raise kids, worship and interact with neighbors and com munity organizations. To claim the future we want, he said, Americans also must reach across the racial divide, and learn to talk to one another about race and our “common future.” With the Soviet threat gone, America must be a world leader by setting an example as a “pluralistic democracy with a growing economy that takes everybody to higher ground.” The solution, he said, Hes with individual and collective acts of con science and compassion: “Millions of Americans are yearning for some thing that’s deeper than the material in our lives.” America indeed finds itself at a crossroads. We can preach to the choir about the value of voluntarism and doing good whiie pushing government to unburden itself of the task of ensur ing the well-being of Americans living established legislatively will have a tremendous Impact on the ultimate size, capability and independence of the foundation. I believe this founda tion will eventually make $50 million or more in health-related grants each year, which is a remarkable legacy for future generations of North Carolinians. This possibOity demands that aU of us support and participate in the continuing work of the legislative study commission — now more than ever. on the margin. Or we can work to build strategic alliances wherever possible that will shoulder the tough jobs in our communities. Elizabeth Dole and Bill Bradley both urge each of us to make a differ ence. But where Dole peddles statistics and rhetoric to make her case. Bill Bradley delivers a thoughtful, provocative and down-to-earth mes sage that cuts to the core of the prob lems that bedevil our communities. As he was leaving the North Carolina summit, I asked Bradley what single piece of advice he would give Americans wanting to create the kind of civil society he envisions. After pausing for a moment, he replied: “Make a commitment person ally to do something for a nei^bor.” On such principles are communi ties buEt. Todd Cohen Need to JOB right away? Post your }ob opening on Philanthropy Journal Online http://www.pj.org Ads posted every weekday. Call (919) 899-3740.
Philanthropy Journal of North Carolina (Raleigh, N.C.)
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March 1, 1998, edition 1
19
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