In the discussion over a headquarters for Blue Cross & Blue Shield of Rhode Island, there are a few givens:
• It makes economic and operational sense for the insurer to consolidate in a new building.
• It is preferable for the company – one of the largest employers in Providence – to stay in the city.
Blue Cross believes its best option is to build a new headquarters in the Capital Center, one of the prime pieces of downtown real estate. Despite the prime location, the site is cost effective because it is immediately buildable and comes complete with 20 years of tax advantages.
The state, understandably, may be interested in using those advantages to lure a new employer to the area, while convincing Blue Cross to stay in Providence but consider other sites.
The only problems with that scenario are, Blue Cross says there are no cheaper options, and as far as anyone knows, the state doesn’t have any ready takers for the Capital Center location.
Those are fairly sizable problems.
We agree with the governor and the health insurance commissioner that it may appear unseemly for Blue Cross to undertake a $114.2 million building project in the high-rent district at a time when insurance costs continue skyward and more and more citizens are unable to afford coverage.
But Blue Cross makes a compelling case that things aren’t always as they seem. Despite the desirable location and the hefty price tag, the Capital Center parcel is really a bargain compared to the alternatives. If the governor or the health insurance commissioner has a cost-effective, acceptable Plan B, they should reveal it.
Otherwise, we see no reason why Blue Cross shouldn’t follow its own game plan.