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Article: Judge rules New Jersey Blue a charity.(Blue Cross and Blue Shield of New Jersey)
- Article from:
- National Underwriter Life & Health-Financial Services Edition
- Article date:
- March 31, 1997
- Author:
CopyrightCOPYRIGHT 1997 The National Underwriter Company. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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A New Jersey judge last week ruled that Blue Cross and Blue Shield of New Jersey is a "charitable and benevolent institution."
State officials could use the ruling to require the nonprofit Newark, N.J., health service corporation to pay a large sum to charity before it converts to mutual status, experts said.
New Jersey Blue has applied for permission to mutualize so that it can merge with Anthem Inc., a large mutual insurer based in Indianapolis. Anthem and New Jersey Blue announced their merger agreement in May 1996.
Attorney General's Opinion
New Jersey law holds that the assets of a charitable institution are held in trust ...