PND (8/29/2000) -- >Blue Cross and Blue Shield of Kansas to Fund Health Foundation

Blue Cross and Blue Shield of Kansas (BCBSKS) has agreed to establish a $75 million public health foundation as part of an agreement to settle its legal battle with the state of Kansas. The new foundation, to be called the Sunflower Foundation, will help fund healthcare services for state residents who are uninsured or underinsured.

The agreement resolves litigation that was filed by BCBSKS against the state attorney general in 1997 to resolve whether or not the company had charitable assets because of the manner in which it was originally operated. The settlement comes as a result of a Shawnee County District Court ruling earlier this year that held that BCBSKS has charitable obligations stemming from the tax breaks it received as a nonprofit organization from 1941 through 1969.

"Thirty-one states, the District of Columbia, and Puerto Rico have or are addressing the preservation and conversion of Blue Cross and Blue Shield’s charitable assets," said State Attorney General Stovall. "I am pleased that this has been resolved in Kansas and BCBSKS can pursue business opportunities that will best serve its needs and the needs of its policyholders."

"Seventy-Five Million to Fund New Health Care Foundation." Blue Cross and Blue Shield of Kansas, Kansas Attorney General’s Office, and Kansas Insurance Commissioner’s Office Joint Press Release 8/21/2000.

Jaffe, Anna. "Blue Cross of Kansas Will Fund Foundation as Part of Settlement." Kansas City Business Journal 8/28/2000.

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