Blue Cross Blue Shield

Money flows to Etheridge

janestancill — Mon, 03 Aug 2009 12:03:06 -0400

Among Triangle Congressmen, Rep. Bob Etheridge has the deepest pockets.

Etheridge, a Democrat from Lillington, has $895,137 on hand, according to the latest report filed with the Federal Election Commission. Etheridge had raised $326,561 during the first six months of the year, including $212,164 from political committees, reports Rob Christensen.

Among Etheridge’s major donors are the International Union of Operating Engineers, Smithfield Foods, the trial lawyers, Farm Credit association, Wyrick Robbins Yates law firm, McGuire Wood law firm, Progress Energy, beer wholesalers, Committee for Rural Electrification, Blue Cross Blue Shield, Committee for the Advancement of Southeast Cotton, Wine and Spirits Wholesalers, and Becton Dickenson.

Rep. Brad Miller, a Democrat from Raleigh, reported having $70,654 on hand. During the past six months he raised $119,704 including $62,700 from PACs. Among his larger donors was the American Association for Justice, Farm Credit Association, the United Auto Workers, United Association (building tradesmen) Raytheon Corp, National Community Pharmacists and the Airline Pilots.

Rep. David Price, a Democrat from Chapel Hill, reported having $271,619 on hand. He reported raising $59,631 during the first months including $52,000 from PACs. Those included United Parcel, John Deere, Airline Pilots Association, the trial lawyers, Honeywell International, Motorola, Deloitte & Touche and CSX Transportation.

Krugman criticizes Blue Cross of N.C.

ryanteaguebeckwith — Fri, 22 May 2009 10:48:54 -0400

Paul Krugman is taking Blue Cross to task.

The liberal New York Times columnist harshly criticized Blue Cross Blue Shield of North Carolina over reports it plans to run a series of ads attacking health care reform.

According to reports in the Washington Post and the N&O, the ads show Americans being prevented from choosing their doctor and forced to wait months by government bureaucrats, though Krugman says many HMO's already do that.

"“We can do a lot better than a government-run health care system,” says a voice-over in one of the ads. To which the obvious response is, if that’s true, why don’t you? Why deny Americans the chance to reject government insurance if it’s really that bad?

Krugman argues that none of the plans currently being discussed would force people into a government-run health care plan.

The ads were prepared by Capstrat, a Raleigh public relations firm.

Public affairs firm opens in Raleigh

bkrueger — Tue, 12 May 2009 11:00:14 -0400

There's a new government relations and public affairs firm in town.

CompassNC is being launched by John Cooper, a former federal agriculture official, Raleigh attorney Kieran Shanahan, Tina Shanahan, who worked for Blue Cross/Blue Shield, and J. Brad Edwards, a former assistant to U.S. Sen. Jesse Helms and a principal with Jenkins Hill Consulting.

Audit blames plan administrators

ryanteaguebeckwith — Fri, 01 May 2009 09:41:27 -0400

Administrators of the State Health Plan did not tell legislators for four months last year about multi-million dollar financial problems.

They underestimated both revenues and claim expenses for the plan, which insures 667,000 teachers, state workers and retirees, creating a nearly $80 million loss last year.

Auditors criticized the administrators, since replaced, for agreeing to a contract with Blue Cross Blue Shield of North Carolina that gave it no incentive to contain costs and was not reviewed by a contract lawyer.

The audit blames much of the problem on too much secrecy among health plan staff and Blue Cross. A company spokesman also faulted forecasting by the health plan's staff. (N&O)

Health plan fix passes House

ryanteaguebeckwith — Tue, 14 Apr 2009 17:23:26 -0400

The state House today passed a major fix to the State Health Plan that will cost taxpayers roughly $710 million, reduce benefits for state employees and teachers, and protect North Carolina pharmacists from increased competition in filling prescriptions.

The legislation also benefits North Carolina chiropractors and physical, occupational and speech therapists by keeping co-payments at the same amount for visits to family doctors, Dan Kane reports.

A similar provision inserted into the 2005 state budget by former House Speaker Jim Black helped land him in prison when three chiropractors admitted giving him cash as he helped them with their legislative agenda.

The plan serves 676,000 state workers, teachers and retirees. A combination of rising health care costs and inaccurate financial projections put the plan in danger of running out of money. The legislation would immediately draw $250 million from the state's rainy day fund to keep the plan from becoming insolvent this month.

More after the jump.

SEANC defends its ad claim

ryanteaguebeckwith — Tue, 31 Mar 2009 16:50:10 -0400

SEANC is defending its radio ad.

Kevin LeCount, an organizer for the State Employees Association of North Carolina, said that its description of Blue Cross Blue Shield's profits was accurate.

The ad says that Blue Cross "made $180 million in profits-including money from a no-bid contract to administer our State Health Plan" — adding that's "not bad for a 'nonprofit.'"

This morning, a Blue Cross official took exception, saying that the company's profit margin on the contract was closer to $478,000.

But LeCount said he has no way to verify that figure.

"The distinction is that we stated that their total profits are $180 million INCLUDING money from the no-bid contract," he wrote in an e-mail to Dome (all-caps his). "We have no idea what their true profits are from their administering of the health plan since they won't open up the entire contract for public inspection."

Blue Cross objects to SEANC ad

ryanteaguebeckwith — Tue, 31 Mar 2009 10:11:09 -0400

How much profit did Blue Cross make?

Lew Borman, a spokesman for Blue Cross Blue Shield, says a recent radio ad from the State Employees Association of North Carolina gets the figure wrong.

The ad claims that Blue Cross made $180 million running the State Health Plan.

Borman said that figure is "totally incorrect."

He said the profit margin on the administrative-services-only contract is .625 percent, or $478,000 last year.

Borman called the ad "a gross mischaracterization" of Blue Cross' role and profits and said it took a "cheap shot" at the company's executives.

"They miss the point," he wrote in an e-mail to Dome. "The real issue is the (State Health Plan's) inability to forecast and pay the growing medical costs."

SEANC airs ads against Health Plan fix

ryanteaguebeckwith — Mon, 30 Mar 2009 09:33:21 -0400

SEANC is airing radio ads against the State Health Plan fix.

The State Employees Association of North Carolina's ads criticize Blue Cross Blue Shield and state legislators for proposing to cut benefits and raise premiums.

"It's not just executives on Wall Street who are making millions at our expense," the narrator says. "Right here in North Carolina, big shots at Blue Cross Blue Shield are bringing home multi-million dollar paychecks, while health care costs skyrocket."

The ad notes that Blue Cross made $180 million last year administering the plan.

"Now the State Health Plan is in trouble and the legislature wants to not only cut benefits, but raise premiums, deductibles and co-pays to cover the costs and leave Blue Cross Blue Shield profits untouched," it says. "That's not fair."

SEANC said the ad is airing "in several markets." A version of the ad available on its Web site urges listeners to call House Majority Leader Hugh Holliman.

After the jump, the script.

Health Plan fix ready for Senate vote

ryanteaguebeckwith — Wed, 11 Mar 2009 12:19:55 -0400

A major fix for the State Health Plan is ready for a Senate vote.

The Senate Appropriations Committee today approved legislation that would cost the general fund $250 million for the current fiscal year ending June 30, and another $609 million for the next two fiscal years, Dan Kane reports.

The legislation also reduces benefits to the roughly 667,000 state employees, teachers and retirees on the health plan by raising co-payments and deductibles.

The committee rejected an amendment offered by state Sen. Doug Berger, a Franklin County Democrat, that would open up plan contracts to the public. He offered the amendment on behalf of the State Employees Association of North Carolina, a group that has questioned the need to cut benefits for employees.

State law keeps nearly all the details of contracts the plan has with vendors secret. Berger said the secrecy prevents the public from having information to make informed decisions about the plan's operations.

"I think now more than ever there needs to be an opening of this process so there is more information," Berger said.

More after the jump.

Blue Cross: Audit already underway

ryanteaguebeckwith — Fri, 06 Mar 2009 15:52:52 -0500

Officials with Blue Cross and Blue Shield of North Carolina and the State Health Plan say there's no need to call for an audit of a contract between the two for administrative services.

They note that the State Auditor is in the midst of a performance audit of the plan, which would likely include a contract review, Dan Kane reports.

"A Performance Audit of the State Health Plan by the State Auditor is currently underway," plan spokeswoman Linda McCrudden said. "Once completed and released, the audit report will be available to the public."

Adam Searing of the N.C. Justice Center's Health Access Coalition, one of two groups that called for the audit, said he is aware there is a state audit under way, but the groups are calling for something different.

"We want something done pretty quickly — I don't know where the state auditor is — and we want something that focuses directly on this contract process (by) someone who really understands in depth the whole contracting process among health plans and employers," Searing said.

Moare after the jump.