Research

Administrative History

The Empire Blue Cross/Blue Shield Panel was established by Chapter 1, Laws of 1993 (Section 4319 of Insurance Law). Empire Blue Cross and Blue Shield, the largest health care financing organization in the United States at the time, served over seven million New Yorkers in twenty-eight counties. The organization came under public scrutiny as a result of an Arthur Andersen and Co. management audit, which found that Blue Cross and Blue Shield had severely depleted its finances due to poor management and inadequate financial performance. A 1993 law required the organization to develop a plan to restore its surplus and otherwise improve operations.

The law forming the special advisory review panel directed it to review the original audit and the criteria for future audits of Blue Cross and Blue Shield; monitor the corporation's six-year plan to restore its financial surplus; evaluate the corporation's administrative expenses and customer services; and obtain information on the financial condition of the corporation. The panel consisted of nine members, three of whom were appointed by the governor, two each by the President of the Senate and Speaker of the Assembly, and one each by the minority leaders of the Senate and Assembly. The panel's legal mandate expired in July of 2000.