BlueCross BlueShield of North Carolina is getting some unwelcome attention for a recent mailer and robo-calls they deployed to their customers in the state, urging them to call Sen. Kay Hagan and tell her to oppose the public option.
Today, a group of 20 state legislators asked Attorney General Roy Cooper and Insurance Commissioner Wayne Goodwin to probe whether BCBS violated laws restricting robo-calls, as well as whether it engaged in political advocacy using the premiums of its customers.
But the probe the lawmakers are calling for appears to be underway already. "We received an inquiry from the AG's office a couple weeks ago," about whether the campaign violated laws, Lew Borman, a spokesman for BCBS of North Carolina, told TPMmuckraker. "We don't believe we broke any laws," Borman added.
BCBS has been particularly aggressive in trying to push it customers to lobby on its behalf. Remember what they were doing in North Dakota?
They sent out a letter [pdf] to subscribers threatening even bigger rate increases if reform passes:
Your health care costs will rise even faster than they have in the recent past Health care costs have skyrocketed the last several years. With current reform proposals, you'll see it increase even more dramatically because:
- North Dakotans won't have the variety of choices they have today. You'll be forced to buy insurance with richer benefits (i.e. higher price tags) than most of you buy today.
- Not every North Dakotan will be covered because it's too easy to opt out until they get sick. That leaves the rest of insurance consumers paying more.
- Low-income residents get state-subsidized plans at a reasonable cost, but those who don't qualify for subsidies will pay outrageous prices.
- Young North Dakota adults will see insurance costs raised by 60 percent to 100 percent—another reason for them not to stay in North Dakota.
- Private insurance rates will increase by 50 percent to 70 percent for small employers.
Nice use of class warfare there, huh? What they are failing to mention is that there isn't a gun being held to the heads of poor insurance company executives to make them increase costs for their customers.
After that story ran, I got an e-mail from a reader and Kossack in Illinois, who shared a couple of e-mails that the company s/he works for received from BCBS Illinois, urging business subscribers to contact Representatives to fight the House bill.
As a business owner who provides health insurance coverage to your employees, you know firsthand how critical it is for health insurance premiums to remain affordable for you and your employees. Blue Cross and Blue Shield of Illinois, a division of Health Care Service Corporation (HCSC) is working with stakeholders like you to ensure reforms work by building on today's employer-based system to extend coverage to everyone, rein in costs and improve the quality of care.
We are now at a critical point in the legislative process and your help is needed to voice concern over the pending legislation in the House of Representatives. Your help is needed in the next 24 hours to voice concern over the Affordable Health Care for America Act. Tell your Representative to vote "NO" on H.R. 3962.
Health care reform legislation in Congress will unintentionally increase premiums to levels that are unaffordable for individuals, families and small businesses. Affordability is the most critical factor in extending health care coverage to everyone.
There is no question that changes need to be made to our health care system and Blue Cross and Blue Shield of Illinois supports a requirement that health insurance companies offer coverage to all applicants, regardless of pre-existing conditions. However, this only will work if every American is required to carry health insurance, minimum benefit levels are sensible, young and healthy individuals are encouraged to purchase coverage, and the personal responsibility requirement is enforceable.
<bBlue Cross and Blue Shield of Illinois opposes the following measures that are included in pending health care reform legislation:</strong>
A government-run health plan in any form – A government plan in any form is unnecessary, would immediately or eventually underpay providers causing major access issues, would increase cost shifting to private insurance and cause millions of people to lose their existing private coverage.
A weak individual mandate, high minimum benefit designs and narrow age rating bands – These proposals will combine to dramatically increase premiums for individuals, families and employers.
Congress is making decisions that will affect your business now. I urge you to contact your Members of Congress today on this critically important issue. [emphasis in original]
As in North Dakota, BCBS sent a second e-mail, with the Illinois version of extortion, promising increased costs for customers if reform passed in including their wish list for reform--all centered on maintaining their profits:
Oliver Wyman's Actuarial and Health and Life Sciences Practice recently provided an analysis for the Blue Cross and Blue Shield Association (BCBSA). The analysis estimated the effect of the proposed health care reform on insurance premiums and shows the total effect five years after reform is implemented. The intent of the analysis is to demonstrate the impact that these proposals will have on premiums in the states Health Care Service Corporation serves, to provide information that policymakers can use to better shape health care reform legislation and to urge members of Congress to carefully consider the consequences of the proposed legislation. Following is the executive summary that briefly explains the analysis, as well as an attachment containing details of the study. However, here are some key findings:
* Health care coverage becomes less affordable
* Premiums increase
* In Illinois, there could be as much as a 119 percent jump
* Broad participation is imperative
* Young and healthy people must participate
* People can't simply choose to buy insurance when they need itAs a result of this thorough analysis, we are recommending these changes to the current reform proposals:
* Strengthen the mandate for individuals to obtain insurance, without which many people will not purchase coverage until they need it.
* Allow greater age discounts for young/healthy people to address the expected increase in their premiums — helping ensure they purchase coverage. We recommend the 5:1 age band included in the original Senate Finance Committee bill.
* Lower the proposed minimum benefit requirements to the levels currently seen in the marketplace, since richer benefits mean richer premiums.
* Eliminate the new $6.7 billion annual insurer fee beginning 2010, which will increase individual and family premiums substantially.
* Include comprehensive medical liability reform, which the Congressional Budget Office states could save $54 billion over 10 years in physician "defensive medicine" practices that increase costs through unnecessary services.We hope you will find this information helpful in understanding the full impact of these recommendations. As health care reform is debated in Congress, we will keep you informed and may again ask you to contact your elected officials.
Isn't that helpful of BCBS, informing their customers of how they'll gouge them in new and creative ways if reform passes? Thanks, Lieberman, Lincoln, Landrieu, and Nelson, for helping them out.
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