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Monday, April 26, 2010
(Updated) NM Insurance Division Settles with BCBSNM on 21% Average Premium Increase for Individual Policies
Update: Be sure to read the excellent report on this by NMI's Bryant Furlow, who attended today's meeting.
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According to an Albuquerque Journal online report, Blue Cross Blue Shield New Mexico today announced it had reached an agreement with the state's Insurance Division to raise rates for individual health insurance policies by an average of around 21% -- instead of the almost 25% premium increase that had previously been okayed by the Insurance Division. The settlement announcement was made BEFORE today's formal public hearing in Santa Fe called by the New Mexico Public Regulation Commission (PRC), rankling opponents of the hike as well as at least one member of the PRC -- Commissioner Jason Marks. Marks suggested that this "backroom deal" before the hearing was not in the public interest.
Imagine showing up for the hearing today to speak out against the increase, as Consumers Union, Senator Dede Feldman and Rep. Danice Picraux did, only to learn a settlement had been negotiated beforehand behind closed doors. In order for that to happen, New Mexico's Attorney General Gary King, who intervened on behalf of BCBSNM customers, must have been in on the deal reached before the hearing with the Insurance Division. Is that kind of behavior indicative of taking a firm position on behalf of New Mexico's consumers? Sure doesn't seem like it.
According to comments forwarded by Charlotte Roybal, Paul Bardecke, representing BCBS, defended the agreement. Commissioner Jerome Block said he did not know about the agreement but he was sure that staff had more information than him and he was sure they made the right decision. Commissioner Jason Marks apologized to the crowd (on behalf of himself only) and made some very strong statements regarding the process. People also complained about lack of access to information via the website.
The odd thing about insurance regulation in New Mexico is that if health insurance rate payers want to appeal a decision made by the Insurance Division, they have to take it to the District Court rather than the PRC. Appeals related to all others kinds of insurance are handled by the PRC. So, in this case, the PRC could not vote for or against any rate increase -- it could only hear testimony, allow for cross-examination of witnesses and take public comments. Sure seems rigged on behalf of health insurers, doesn't it?
Insurance Division Superintendent Morris J. Chavez even refused to postpone today's hearing despite being requested to do so by the leadership of the Interim Legislative Health and Human Services Committee, State Sen. Dede Feldman and State Rep. Danice Picraux. The legislators wanted the Insurance Superintendent to postpone action until the federal Department of Health and Human Services issues new ratemaking oversight regulations pursuant to the health insurance reform legislation recently passed by Congress and signed by the President. The regulations are due to be issued by the end of April. I guess Supt. Chavez, Attorney General King and BCBSNM were all in a hurry to get the huge premium increases passed before regulations are issued.
April 26, 2010 at 05:58 PM in Economy, Populism, Government, Healthcare, Obama Health Care Reform, Regulation | Permalink
Comments
Gary King and Mo Chavez should hang their heads in shame. They are supposed to represent the people but they obviously only care about kissing up to BCBS. How dare they make a secret deal behind the scenes and come to the public hearing to announce it before the hearing takes place! Hey legislators wake up and fix how health insurance is regulated!
Posted by: Karen | Apr 26, 2010 7:40:08 PM
I would have been one of those "single insured" people that BCBS will now be sticking with a 21% premium increase, about par for the course, in my experience. But I got kicked out of my insurance for "mild seasonal allergies." (I know. You are probably sick of the story, but some people don't know they will find any reason to refuse insurance.)
The people who are being hit with this increase are already paying among the highest rates for insurance because they are self-employed and thus are not part of a larger potential pool where the "costs of health care" are spread around.
I was one of those people. However, as a result of having been denied coverage, I was able to finally get into a bigger insurance pool, a pool of all those who are "denied coverage" and become eligible for the NM Medical Insurance Pool.
I understand that Vermont is now looking at ways to insure their people that go beyond what the US Senate was able to pass.
Single payer is the way to go. I want to thank Jason Marks for going the distance once again, for all of us. Good job, glad to have you on the PRC. We need more like you!!
Posted by: bg | Apr 26, 2010 7:56:36 PM
This is a big hit on our small businesses and entrepreneurial innovation. The parasite is killing the host.
Posted by: qofdisks | Apr 28, 2010 9:47:57 AM
