Attorney General's News Release

January 6, 2000

Nixon, Dept. of Insurance and Blue Cross out-of-court agreement will create state's largest healthcare foundation

Jefferson City, Mo. — Missouri Attorney General Jay Nixon, the Missouri Department of Insurance and Blue Cross Blue Shield of Missouri today dismissed the lawsuits pending between them in Cole County Circuit Court and announced an out-of-court settlement which will create the Missouri Foundation for Health, the state's largest healthcare foundation.

The agreement, supported by the national Consumer Union and nearly 100 state consumer and community groups, settles a claim filed by Nixon challenging Blue Cross' attempt to create a for-profit managed care company, RightCHOICE Managed Care Inc., using the not-for-profit assets of Blue Cross.

The new Missouri Foundation for Health, which will be dedicated to meeting the health care needs of the uninsured and underinsured in St. Louis and 85 Missouri counties, will be funded upfront by $12.8 million in cash and 15 million shares of stock 100 percent of Blue Cross' holdings in RightCHOICE Managed Care Inc.

"The new foundation provides a historic opportunity to improve access to quality health care for those in need," Nixon said. "It is not appropriate to delay implementation of this important agreement any longer."

The foundation was a part of a settlement agreed upon by the parties last year, but attempts to secure court approval in the Cole County Circuit Court have delayed the settlement.

The decision to drop action in Cole County Circuit Court and finalize the settlement out of court was made following an order from the state Supreme Court in December providing the parties the opportunity to go forward with an out-of-court settlement.

The creation of the new foundation has the support of community groups representing almost a hundred organizations, including the National Consumers Union, the Reform Organization of Welfare, the Missouri Association for Social Welfare, the American Association of Retired Persons, the League of Women Voters of Missouri and Missouri Consumer Health Care Watch.

"Consumer groups have worked diligently with the state and Blue Cross to reach an agreement dedicated to public health," Nixon said. "The Supreme Court's order provided the parties the opportunity to go forward without further delay at the circuit court level."

In addition to providing a large up-front cash payment to the Missouri Foundation for Health, the settlement ensures citizen input in selecting the initial board of the foundation by creating a citizen nominating committee and a community advisory committee.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818