Reorganization & Economic Development Act.

What It Actually Does

Lets Blue Cross NC move $4.6 billion in policyholder money into a new holding company with less regulatory oversight. The state Insurance Commissioner called it "a sure way to raise premiums."

This legislation establishes detailed rules for hospital service corporations to restructure themselves under nonprofit holding companies, permitting transfers of up to 25% of assets including cash, investments, and subsidiaries to these less-regulated entities. The bill includes specific provisions about executive compensation reporting, governance requirements, and exemptions from certain insurance conversion laws.