SEATTLE (AP) - Premera Blue Cross is withdrawing an appeal to the Washington Supreme Court and ending its quest to become a publicly traded, for-profit corporation.
"It's time to put this behind us and focus on the future," said Scott Forslund, a spokesman for the nonprofit health insurance company that services more than 1.3 million people in Washington.
Premera Blue Cross had been seeking for-profit status since 2002. Insurance Commissioner Mike Kreidler denied the request in 2004 and a state Appeals Court ruled against Premera in 2006. The case has been pending before the state Supreme Court for nearly a year.
Forslund said Monday the case had become "an irritant and a distraction" for Premera, its customers and the medical community.
"It was a matter of looking at what we need to do to keep the focus where we need it to be," he said concerning the company's decision not to wait until the Supreme Court ruled on its appeal.
The Mountlake Terrace based health insurer has operated as a nonprofit since it was formed in Washington state in 1933 and has operated in Alaska since 1957. Premera sought for-profit status to gain access to cash to finance the company's future growth. As a nonprofit, Premera is prohibited from having investors.
Forslund said Premera reached out to business, medical and community leaders to seek their views before making the decision announced Monday.
"While some constituents have supported the conversion effort, others have opposed it," said Premera CEO Gubby Barlow, in a statement. "In particular the medical community expressed concerns about conversion. Premera listened to these constituencies and decided to drop the conversion appeal."
Barlow said the company has no plans to reapply for public-company status.
The Washington State Hospital Association also announced Monday it would withdraw a lawsuit it filed in 2003 to block Premera's conversion.
Leo Greenawalt, president of the association, said Washington hospital officials felt the conversion of Premera to a for-profit company would not be in the best interests of the people of Washington or the state's health care system.
"We are pleased to put past disputes related to conversion behind us," Greenawalt said, in a statement. He said the two organizations would work together to find other ways to help promote health care quality and would study the impact of government underpayment.
