Commissioner Marks to Have PRC Consider Serna/Con Alma Conflict of Interest at February 17, 2005 Public Work Session

Mr. Eric Serna, the New Mexico Superintendent of Insurance, also serves as the president of the Con Alma Foundation, a private foundation created to manage charitable assets of Blue Cross/Blue Shield of New Mexico and the Los Alamos Medical Center when they converted to private ownership. Con Alma uses its funds to give grants to organizations working to improve healthcare resources available in New Mexico, especially rural areas. The work of Con Alma contributes to our state’s future, and I commend Mr. Serna for his very deep personal commitment to those efforts. Given the alignment between Con Alma’s mission and the public interest, I don’t perceive an inherent conflict between his leadership role at Con Alma and his holding the office of Insurance Superintendent.

However, there are aspects of this arrangement that must be addressed. The most important of these arises from Con Alma’s fundraising amongst insurance companies, trade associations, and others who have an interest in the Mr. Serna’s decisions as Insurance Superintendent. Regardless of whether contributions are being solicited from regulated entities, or merely being accepted, I believe that these contributions pose a real conflict of interest, not just an “appearance” of a conflict.

While these concerns would be satisfied by Mr. Serna’s resignation from the Con Alma Foundation, I believe the public interest would also be satisfied by measures that do not deprive Con Alma of Mr. Serna’s leadership. For example, Con Alma could elect to change its fundraising policies to bar contributions from entities regulated by the Insurance Division.

I have asked the Superintendent to consult with others at Con Alma and to be prepared to discuss the matter at the Commission’s regularly scheduled February 17 work session. This meeting is open to the public and will be held at the Commission’s offices, P.E.R.A. Building, 1120 Paseo de Peralta, Santa Fe, New Mexico, beginning at 9:30 a.m.