Over the past 35 years, I have had Blue Cross and Blue Shield (BCBS) insurance coverage. I have also been a provider within their network. During all those years, I have had a steady stream of premium increases, just like almost everyone in our state, but I have never gotten any rebate of premium. By contrast, my auto and homeowner insurance has rebated part of my premium every year, with a recent rebate of over $4,000.
BCBS introduced legislation this session to provide for the creation of a holding company for many of their assets that are presently restricted by the Department of Insurance to move or use for for-profit ventures. This structure has been in place for years to protect Alabamians from the use of their own premiums for ventures that have nothing to do with provision of care, paying claims, or providing a buffer for potential catastrophic claims. Those assets and excessive premiums collected by BCBS are supposed to be rebated back to the consumer. But as mentioned above, I’ve never seen any rebates.
The lobbyist for BCBS made the ridiculous claim that BCBS is not obligated to provide any public good or concessions, yet throughout the entire history of BCBS the company sought to care for patients in their community and for those patients to have a cost-effective way of payment for their hospital services. It was never created to serve as a profit-generating machine at the detriment of the consumer.
This bill has multiple unintended or potential harmful long-term effects for Alabamians. By creating a holding company that would receive the premium dollars earmarked for patient care, it will allow for the leadership of BCBS to further enhance the compensation of their own corporate officers, while providing absolutely no benefit to those that pay those premiums.
Secondly, it will allow for further harmful vertical integration of the health care industry. In North Carolina, BCBS purchased acute care centers and other health care facilities, again reducing competition and causing health care inflation. This happened after the state passed identical legislation to that proposed for Alabama. North Carolina’s elected Republican Insurance Commissioner Mike Causey testified before the state legislature urging them not to enact this legislation. One wonders why he would do so if this legislation was as harmless as some say.
Finally, if this type of legislation was not harmful, then why did the elected Republican Insurance Commissioner of North Carolina, Mike Causey, testify to the North Carolina legislature not to pass this harmful legislation?
We must stop this steal of our precious insurance and the premiums that have made BCBS successful. Please contact the Alabama Legislature to say no to SB247.
Dr. Randy Brinson, is a gastroenterologist in Alabama and former health care advisor for Gov. Fob James of Alabama.
The views and opinions expressed here are those of the author and do not necessarily reflect the policy or position of 1819 News. To comment, please send an email with your name and contact information to [email protected].
Don’t miss out! Subscribe to our newsletter and get our top stories every weekday morning.
