Blue Cross and Blue Shield of Nebraska's board of directors has unanimously approved a plan to reorganize the company into a mutual insurance holding company.
In a statement, the company said that, as a mutual insurance holding company, it would have more opportunities and flexibility to invest assets in ways that might not be available under its current structure. The company said that policyholders would benefit because the reorganization would enable the company "to invest in developing technologies and programs aimed at making health care services more efficient and less expensive."
The proposed reorganization would create a new mutual insurance holding company, GoodLife Partners, Inc. If approved, this new mutual insurance holding company would become the overall parent company for Blue Cross and Blue Shield of Nebraska and its subsidiaries.
As required by Nebraska law, the Nebraska Director of Insurance will hold a public hearing on January 22, 2018. Following the public hearing, if the director determines that the reorganization is fair and equitable to policyholders, the proposed change will be submitted to policyholders for approval at the company's annual meeting of members on March 26, 2018. If approved, the reorganization would become effective July 1, 2018.
Other Blue Cross and Blue Shield plans across the country, as well as several Nebraska insurers, have formed mutual insurance holding companies.