New York State

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RELEASE

Contact:

Public Affairs

(212) 480-5262

www.ins.state.ny.us

Eric R. Dinallo   Superintendent of Insurance  25 Beaver Street  New York, N.Y. 10004

ISSUED January 3, 2008 FOR IMMEDIATE RELEASE

 

DEPARTMENT TO HOLD HEARINGS ON GHI, HIP’s CONVERSION PLAN

Public’s input sought on proposal by Group Health Incorporated (GHI) and Health Insurance Plan of Greater New York (HIP) to become for-profit entity

Superintendent of Insurance Eric R. Dinallo today announced that the Department will hold public hearings on January 29 in Manhattan and January 31 in Albany as part of its regulatory review of a proposal by Group Health Incorporated (GHI) and Health Insurance Plan of Greater New York (HIP) – together known as EmblemHealth – to convert to a for-profit company.

The companies submitted a formal Plan of Conversion to the Department, asking for the Department’s approval to further combine into one organization and convert from not-for-profit to for-profit status under a new holding company structure with a Delaware corporation as the ultimate parent. In order to approve the proposed conversion, the Superintendent must decide that it will not adversely affect HIP’s and GHI’s contract holders and enrollees; will not negatively impact the delivery of health care benefits and services to the people of New York; and will result in the fair, equitable and convenient winding down of the business and affairs of the not-for-profit corporations.

Although all policyholders have received notice of the hearings, the proposed conversion does not aim to affect policyholders’ present rates or benefits, which will be continued automatically by the proposed for-profit corporation.

A summary of the Plan may be obtained by calling 1-800-447-9975. The complete Plan may be viewed during normal business hours at the offices of HIP, 55 Water Street, 1st floor, New York, New York or at the offices of GHI, 441 Ninth Avenue, 1st floor, New York, New York. The complete Plan also may be viewed at the Health Bureau of the New York State Insurance Department, 25 Beaver Street, New York, NY and One Commerce Plaza, Albany, NY, between the hours of 9 a.m. and 4 p.m., Monday through Friday.

Anyone who wishes to view the Plan at the Insurance Department’s New York City office should telephone Daniel Sheridan at 212-480-6093 to make an appointment. Anyone who wishes to view the Plan at the Insurance Department’s Albany office should telephone Linda Flynn at 518-486-7815 to make an appointment. The Plan is also posted on the Internet websites of HIP and GHI at www.hipusa.com and www.ghi.com, and on the Insurance Department’s website at www.ins.state.ny.us.

Anyone with questions about the Plan may call HIP or GHI at 1-877-444-6506, or the New York State Insurance Department at 212-480-5148.

The public hearings are scheduled as follows:

New York City January 29, 2008 at 10 a.m.
  HIP
  55 Water Street
  New York NY
   
Albany, NY: January 31, 2008 at 11 a.m.
  The Empire State Performing Arts Center
  “The Egg”
  Albany, NY

Any member of the public may testify at these hearings or submit written comments concerning the proposed Plan. Testimony or comments should address the Plan. To schedule testimony, contact the Department’s Public Affairs Bureau at (212) 480-5262.

Written comments should be addressed to Emblem Hearings, Public Affairs Bureau, New York State Insurance Department, 25 Beaver Street, New York, NY 10004 and/or e-mailed to the Insurance Department at EmblemHearings@ins.state.ny.us. Comments will be accepted for 30 days after the close of the last public hearing.

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