Harrison wants BCBS investigation

Rep. Pricey Harrison has asked for an investigation into Blue Cross and Blue Shield's campaign against the public option health care proposal.

Harrison, a Greensboro Democrat, has asked the Attorney General and N.C. Department of Insurance to look into whether the insurer violated the state's do-not-call registry with a robocall and whether it is proper for the insurer to use premiums to pay for mailers, reports Mark Binker of the Greensboro News & Record.

"We are a fully taxed medical services and hospital corporation," Borman said, adding that the company paid $162 million in federal, state and local taxes last year.

However, the fact the company paid taxes does not make it a for-profit company, said Adam Searing, a health policy expert with liberal-leaning advocacy group The North Carolina Justice Center.

"They are a nonprofit organization," Searing said. "They are organized under a special part of the nonprofit corporation law in North Carolina. They have a nonprofit board."

Insurers want a raise

The state's insurance companies want to raise auto insurance rates.

The North Carolina Rate Bureau, which represents auto insurance companies, has requested a 1.4 percent increase of the statewide average for 2009.

Insurance Commissioner Wayne Goodwin will review the request before he sets the state's rates, his office announced in a news release. The industry is currently fighting in court over a rate cut ordered by former Insurance Commissioner Jim Long who cut rates by 16.1 percent. 

If Goodwin and the insurers cannot agree on a rate, Goodwin will call for a hearing on the issue. The last hearing ended with the insurers taking the state to court. They disputed Long's cut and instead raised rates by 9.4 percent, according to Goodwin's release. 

The difference between what Long ordered and the rate insurers are charging has been placed in an account. The money would be paid to insurance customers if the state wins the court case, Goodwin said.

Long rushed to hospital

Jim LongFormer Insurance Commissioner Jim Long was rushed to the hospital today.

A spokeswoman for the N.C. Department of Insurance said they did not have further details at this time, but they could confirm that he fell ill in a legislative building this afternoon.

"The only thing we know is that he collapsed and was unconscious for a short period," she said. "He was taken to the hospital and his doctor is on the way."

Long did not show up to a state meeting as expected today.

After serving as commissioner since 1984, Long announced his retirement last year.

Update: WUNC's Laura Leslie reports that Long was in the Legislative Office Building, where he had gone to have lunch with former staffers before attending a hearing on coastal insurance.

Second Update: Long's successor, Wayne Goodwin, said he was taken to Rex Hospital.

Third Update: A hospital spokeswoman said he is being assessed by doctors at this time. They are trying to figure out what caused the collapse, she said.

His wife, Peg O'Connell Long, was out of town today, but is en route to the hospital, the hospital spokeswoman said.

Consumer hotline recalls Long

Jim LongJim Long may be gone, but his number's not forgotten.

After serving as state insurance commissioner from 1984 until earlier this month, Long has left an imprint on his former department.

Specifically, its consumer hotline.

The number — 800-546-5664 — still spells out 800-JIM-LONG on the phone keypad.

His successor, Wayne Goodwin, may have some trouble finding a new number. 1-800-GOODWIN is already taken by Goodwin and Scieszka, a Michigan personal injury law firm.

Hat Tip: Mark Johnson 

Cabinet spends more than Council of State

Cabinet members oversee more money than the Council of State.

A review of the 2007-08 budgets for the 10 appointed members of the governor's Cabinet show that they typically oversee larger budgets than the 10 statewide elected officials.

Only the departments of Public Instruction, Justice and Agriculture come close, and the superintendent of public instruction does not have similar authority over that department as a Cabinet official.

The smallest Cabinet budget was larger than all but three of the Council of State budgets.

Public Instruction: $9.5 billion

Justice: $121.7 million

Agriculture: $98.4 million

Treasurer: $38.5 million

Insurance: $36.2 million

Labor: $25.3 million

Auditor: $15.9 million

Secretary of State: $11.9 million

Governor: $6.7 million

Lieutenant Governor: $914,122

As before, the figures include money received from both state and federal sources. As a major player in the state budget, it goes without saying that the governor has more authority over state spending than these numbers indicate.

The revised numbers for 2008-09 are not yet available.

State Health Plan head abruptly fired

The State Health Plan's executive administrator was abruptly fired Tuesday after lawmakers discovered a $115 million loss in the fund that provides health care for roughly 650,000 employees' and retirees' health care.

House Majority Leader Hugh Holliman, a Lexington Democrat, and Senate Majority Leader Tony Rand, a Fayetteville Democrat, sent a letter to state Insurance Commissioner Jim Long "requesting a change in leadership," which led to the dismissal of George Stokes. He had led the plan for roughly three years.

"We just felt that we were not informed in the way we should," said Holliman.

Holliman said lawmakers had expected a $50 million surplus in the plan, but discovered last week that there was a $65 million deficit. He said it would not affect the state budget for the current fiscal year that began on Monday, but would need to be dealt with in next year's state budget.

He said the prior administrator, Jack Walker, has been asked to lead the health plan on an interim basis.

The letter sent to Long said that "we very much appreciate Mr. Stoke's service to the state and regret that this action is necessary, but believe it to be essential."

Chrissy Pearson, a spokeswoman for the state Insurance Department, said Long and other staff had no idea there were problems with the fund or with Stokes' management.

"It has caught us by surprise," she said.

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