HIP and GHI Submit Plan to New York State Department of Insurance to Convert to For-Profit Status
Public Hearings in New York City and Albany on January 29 and 31
EmblemHealth, Inc., the parent company of Health Insurance Plan of Greater New York (HIP) and Group Health Incorporated (GHI), has submitted to the New York State Insurance Department its plan to convert and combine the two not-for-profit health insurance providers into a single for-profit public company. The EmblemHealth, HIP, and GHI boards of directors have approved the move. The conversion is subject to the approval of the New York State Department of Insurance, which will hold public hearings on January 29 in New York City and on January 31 in Albany as part of its consideration of the plan.
The combination of HIP and GHI and their concurrent conversion into a for-profit entity are vital to the continued health of both companies, and are also in the best interest of policyholders, members, and local residents. As a combined for-profit company, EmblemHealth will have access to capital that will allow improvements to technology infrastructure, product offerings, and customer service-improvements necessary to be competitive in the years ahead. The combination should also result in savings due to economies of scale.
The conversion will enable both companies to continue to pursue important, customer-focused initiatives. The health care needs of New Yorkers and other tri-state area residents will be better served by the resultant bigger, stronger, locally owned entity.
The conversion plan has been designed to protect the interests of our members and policyholders. It is expected that conversion will have no impact upon the delivery of health care benefits. Current HIP and GHI benefit plans will remain in place, ensuring continuity for those who wish to keep their current level of coverage. At the same time, the combination will facilitate the development of a more complete offering of products, making the combined company more attractive to employees and their benefit managers.
