Frequently Asked Questions regarding the pending conversion of GHI and HIP to for-profit status:
1. Why do HIP and GHI want to convert to a for-profit company?
Answer: Throughout their 70-year history, GHI and HIP have been dedicated to assuring access to the best health care possible at an affordable price. As affiliated companies under EmblemHealth, they continue to operate in an ever more competitive environment. To continue this mission we must grow, and to grow we need access to public equity markets. Because many regulatory, legal, and financial steps must still be taken, an exact date for conversion to for-profit status is not yet known.
2. What can you do as a for-profit that you can't do as a not-for-profit?
Answer: The ability of EmblemHealth and its affiliated companies, HIP and GHI, to grow and increase the efficiency of operations relates to the amount of capital that it has to invest in those operations. Other well-capitalized for-profit companies in the New York metropolitan area have access to equity markets that provide the necessary capital to keep pace with health care innovations and to improve products and services.
3. Will the company structure change if it converts to for-profit status?
Answer: HIP and GHI conduct business under several affiliated corporations some of which are already for-profit. As part of the conversion, there will be a consolidation of functions and companies into subsidiaries that will all be owned by a public holding company. These consolidations should not have an impact on our members, but will make operations more efficient.
4. How will conversion affect members of HIP and GHI?
Answer: Conversion to for-profit status will not affect service to our members, their access to doctors, their benefits, or the levels of service that they currently receive. Over time, as new products and services are introduced, members should see greater flexibility in types of coverage, more choice in benefit plans, and more customer-driven innovations that improve access to care.
5. Will a change to a for-profit company lead to premium increases?
Answer: No. As in the past, rates will be determined by the cost of medical, hospital, pharmaceutical, and other covered benefits and services, as well as other marketplace forces. Rates will not change as the result of a change in corporate structure.
6. Will a change to a for-profit company lead to changes in lines of health care business?
Answer: No. EmblemHealth's affiliated companies, HIP and GHI, have assured access to the best health care possible at an affordable price for many years. They will maintain their commitment to the community regardless of corporate status.
7. If the company converts to for-profit status, will my doctors remain the same?
Answer: Conversion to for-profit status will not affect our strong relationship with our providers, service to our members, their access to doctors, their benefits, or the levels of service that they currently receive.
