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OPINION

Tone-deaf Blue Cross

Saturday, November 28, 2009
(Updated 3:00 am)

 

Did Blue Cross Blue Shield go too far in its war of words against congressional health care reform?

Rep. Pricey Harrison of Greensboro thinks so and now she's got company.

Twenty fellow legislators have joined Harrison, a Democrat, in asking state Attorney General Roy Cooper and the state insurance commissioner to investigate whether the insurer crossed the line in its appeal to North Carolinians to oppose federal health care bills, specifically a public option for coverage. Those lawmakers include Rep. Alma Adams and Sen. Katie Dorsett of Guilford County and Stan Bingham of Guilford and Davidson counties. Bingham is the lone Republican among the 20.

Harrison is contesting BCBS' use of automated robocalls that began in October to press its case against the federal legislation. She questions whether those calls violated the state's do-not-call registry. Harrison also has challenged whether it is appropriate for the not-for-profit corporation to use premium revenues to pay for what amounts to a political campaign.

Harrison obviously has a dog in this fight. She has been part of a White House working group on health care reform since July.

But on the issue of the robocalls, BCBS does appear to be on shaky ground.

State law allows communication with current customers about company products and service. These calls, however, also went to noncustomers. Further, the Attorney General's Office has said in a letter to BCBS that some of the calls did not provide proper contact information, as the law requires.

The company could face a fine, depending on the final ruling.

Even more germane is what the public thinks.

Blue Cross has a right to voice its concerns. Yet, besides stumbling over legalities, it also seems to be suffering from a health issue of its own: tone deafness.

Even as it was making its case with customers last month via postcards asking them to contact U.S. Sen. Kay Hagan of Greensboro to express their opposition to government-run insurance, it was making them angry by announcing an increase in premiums ranging from 11 percent to 26 percent.

BCBS already has a hard time couching itself as David versus the feds' Goliath. It commands a 72.5 percent market share in the state and more than 96 percent of individual policy coverage.

Again, that's not to say Blue Cross doesn't have a right to speak its piece.

But some of the $158 million it reported in net income in 2008 might have been better invested in a more effective public relations strategy.

We could have told them that for free.

Comments

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lilbean

November 28, 2009 - 5:22 am EST

good lord, this one reeks of dnc talking points. mention the companies market share but leave out the congressionally mandated border limits preventing competition. mention the companies income but leave out its profit margin.
if theres a conflict, i would say its an elected state representative "working" for the whitehouse. gonna have to check the state constitution on that one.
two final points? bc/bs nc's profit margin for 2008? 3.6%
http://www.wral.com/news/local/wral_investigates/story/4668082/
and stan bingham?? welcome to the purge.

Interested

November 28, 2009 - 7:25 am EST

3.6% may not seem like much, but you left out the fact that it was the lowest margin in 5 years, this from a NON-profit during a period of time when many companies were operating in the red. Sorry, but BCBS gets no sympathy.

JGALT

November 28, 2009 - 7:35 am EST

They don't deserve sympathy. They deserve competition. I'd like to see their share down to 25% or less with a higher return, on much lower revenues from that lower market share. There are 1300 health insurance companies. We should be able to shop them for the kind of plan one wants-- not what Pricey and her cohorts have decided (with industry help) what we ought to have.

dcolin

November 28, 2009 - 3:17 pm EST

For lillbean,

why would you think 3.6% a small number.

chickenlittle02

November 28, 2009 - 4:02 pm EST

3.6% may not be a small number, but in the scheme of industry profit margins, it ranks pretty low on the totum pole. Many goods and services that we NEED take a much higher profit than insurance companies. Where is the outrage over that? Sorry, I think that insurance companies have been made the scapegoat in a much more complex problem that is healthcare reform. And if we don't fix the other pieces, it's going to be a huge bust.

http://1.bp.blogspot.com/_otfwl2zc6Qc/SoMLoWBKM4I/AAAAAAAAK4g/wKdZyg5LxQ...

dcolin

November 28, 2009 - 4:09 pm EST

No they don't.

This is 3.6% of premiums.

They have very little invested.

They don't produce anything
They just take a cut of the money passing through.

JGALT

November 28, 2009 - 7:30 am EST

Well said. Pricey could be working on competition among health insurers. As an ex-lawyer she won't be working on tort reform though we know it works to bring costs down (see Texas). The News and Record should examine the donations by the Health Insurance Companies and Industry to campaigns of the NC Legislature. N and R should look at the lobbying practices as well. The robo calls issue is a side show moved to the main tent of this circus to distract rubes.

miktay

November 28, 2009 - 7:31 am EST

I wonder if those 11 to 24 percent premium increases have anything to do with that near monopoly of 72-96 percent market share. I think the rate of inflation on everything else this year has been pretty close to zero.

lgrimestriad

November 28, 2009 - 7:33 am EST

I find it ironic that the ad immediately below this article on line is one for BCBS to get free rate quotes from the state's largest insurer!

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