BREAKING: Insurance Companies like BCBS would be considered CO-OPs

[berni_mccoy]

From Daily Kos:

http://www.dailykos.com/storyonly/2009/9/8/776009/-BREAKING:-Health-Care-Scandal-in-Kent-Conrads-North-Dakota

BREAKING: Health Care Scandal in Kent Conrad’s North Dakota
Kent Conrad (D-ND) is one of the gang of six – the Senators on the Finance Committee who are trying to figure out how to pay for health care reform. Conrad has been pushing for a co-op plan, which would be done either regionally or state-by-state. Let’s take a look at health care in North Dakota, shall we?

Ninety percent of private health insurance in North Dakota is handled by Blue Cross Blue Shield of North Dakota (BCBSND). BCBSND is a non-profit company. In fact, their website says they’re a mutual insurance company (which means their policyholders have certain ownership "rights").

Sounds to me like a co-op. Even if there are minor differences between a mutual insurance company and a co-op, I’m sure the lawyers of BCBSND could figure out a way to convert to co-op status.

Now let’s look at the brewing scandal in North Dakota.

Dbug's diary :: ::
The Forum (the newspaper in Fargo – the largest city in North Dakota) had an article on their website today. The Insurance Commissioner of North Dakota has been looking into BCBSND. Here’s the lede from today’s Forum story (DETAILS ONLY IN TODAY'S FORUM: Blue Cross Blue Shield execs profited from bogus bonuses -- unfortunately, you may have to sign up with the website to read the story):

Nearly $15 million in employee bonuses that were almost assured regardless of performance.

Sales reward trips to posh resorts totaling $1.2 million.

A $3.5 million investment in a murky hotel partnership lacking audited financial statements.

All this and much more during just the past five years are among almost half a billion dollars in expenses detailed in a report by state insurance examiners who probed spending practices by Blue Cross Blue Shield of North Dakota.

Also, they’ve been jacking up their prices every year. Why not? They’re almost a monopoly. And they need that money to fly their top salespeople to the Grand Caymans. It gets cold in North Dakota.

Yeah, they’re non-profit. Yeah, they’re "owned" by policyholders. They’re almost a co-op. But they’re also the best argument for getting rid of health insurance and switching to a government plan.

Wait, there's more.

Before posting this, I checked DKos and found Kiku’s diary, Conrad's co-op would include BCBS. Here’s a quote from the NY Times (thanks, Kiku):

Mr. Conrad’s own state demonstrates the uncertainties surrounding cooperatives. Blue Cross Blue Shield of North Dakota dominates the state’s private insurance market, collecting nearly 90 percent of premiums. As a nonprofit owned by its members, the company would hope to qualify as a co-op under federal legislation, said Paul von Ebers, its incoming president and chief executive.

Kiku not only links to the NY Times article, but to a couple other diaries. If you want, you can read lots more about BCBSND.

---

WOW! Rec-listed. Cool.

Update: BCBSND has called a press conference for 2pm (Central). That's Noon Pacific, 3pm Eastern, which is right now. It's supposed to be streamed live on WDAY AM 970. That's WDAY.com -- and click on the AM Radio button at the top.

No press conference. "People were caught off guard." The insurance commissioner will release some information later this afternoon. Then BCBSND will respond to that.

Sounds like someone leaked the information to the Forum.

What I take from this is that basically, BCBS is unregulated so, while they are not "for-profit" that doesn't prohibit them from paying out huge bonuses and rewarding the executives with mega bucks. This would not happen in a public option.

[berni_mccoy]

1. kicking for the dinner crowd.

[glinda]

2. BCBS in MN is my Ins.Co.. BCBS raised my rates 3x in one month. BSBS has a monopoly

on the Health Care System and all the people from northern MN and in ND have to go to Fargo Hospital in ND. If you have a heart attack and need special care or surgery, you have to fly by helicopter and will most likely be dead by the time that you arrive there. The result of much of this is that BCBS has huge tie ins to Repubs. BCBS has a HUGE stake in current University and other employees that they suck thousands of dollars from their paychecks and then after they retire, if they do not have enough to get them through til'65, charge them well over a thousand dollars per month for only two people. BSBS go to hell!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[Doctor_J]

6. In MI they raised me 25% last year, and will raise again this year

I went over to the HMO available from my employer

[glinda]

7. Student Tuition rises at the rate of the cost of providing Insurance to University Staff.

So exactly how does any sort of "pooling" of people into a plan controlled by Insurance Co. help the overall public. It does not.

[AzDar]

3. K & R

[mmonk]

4. So I have the public option! Hooray!

How come I'm still $14,000+ in the hole in comparison with any Canadian?

[Maru Kitteh]

5. BCBS sucks ape balls. They are my insurance "provider."

They provide me almost nothing. They do take a big chunk of our income however.

[glinda]

9. Here too. I think they have gotten far well over a hundred thousand over time from my husband if not

much more and yet they would never cover that amount should something happen.

[TheKentuckian]

8. Why are we letting these tiny state and on the take morans drive this?

Conrad and Baucus are making me explosively angry.