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Monday, April 26, 2010
NM Supt. of Insurance Denies Legislators' Request for Postponement of Hearing on BCBSNM Rate Increases
Despite a last-minute request from the leadership of the Interim Legislative Health and Human Services Committee to postpone the hearings today, Monday, April 26, Morris J. Chavez, Superintendent of Insurance, Insurance Division, Public Regulation Commission (PRC), will go forward with formal administrative hearings on rate increases for individual policies issued by Blue Cross Blue Shield New Mexico.
"We question whether the public interest is being adequately addressed and whether consumers are being protected in the decision-making process when rate increases like these are considered only on the basis of insurance companies' interests," said Senator Dede Feldman (D-Albuquerque), vice chair of the Legislative Health and Human Services Committee, in a written statement.
In a letter to Superintendent Chavez (pdf), Feldman and Rep. Danice Picraux (D-Albuquerque), chair of the Legislative Health and Human Services Committee, requested the postponement in order for the federal Department of Health and Human Services to issue new ratemaking oversight regulations pursuant to the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010. The regulations are due to be issued by the end of April.
Picraux voiced some of her concerns: "Among other things, we are concerned that the public has not had an adequate opportunity to learn of this hearing and the issues it raises. On the hearings docket located on the Insurance division website, you will find nothing about this hearing, nor will you find any briefs of comments available." She also expressed concern that, as late as Thursday, April 22, the PRC had changed the meeting location and time.
The letter by Picraux and Feldman also questioned the Insurance Division for its inability to protect New Mexicans against rates that among the highest in the United States, according to a study by the Center for Financing, Access and Cost Trends of the Agency for Healthcare Research and Quality. The study showed employer-sponsored rates nearly doubling between 2000 and 2006 and even great increases in the individual market. Click to see the letter (pdf) to Superintendent Chavez.
The hearing will begin today at 9:00 AM at the PRC's Apodaca Room on the Second Floor of the P.E.R.A. Building at 1120 Paseo de Peralta in Santa Fe.
Also see our previous post on this issue.
April 26, 2010 at 09:18 AM in Government, Healthcare, Regulation | Permalink
Comments
This is terrible. This was advertised as a public meeting. Our country and our state are feeling the affects of a down economy. Teachers are expected to take a 2 or 3 percent cut. Our state workers are on mandated furloughs. And this insurance company has the nerve to ask for a rate increase.What was their profit this year. How much do the CEO's make? Why aren't they willing to take a cut? What are the commissions paid to the insurance salesmen. I am really disappointed. What happened to the public in this? If your goverment is not responsive to the paying public, you don't really have much. I do understand on some level the frustration of the teabaggers. I am proud of Sen. Feldman and Rep. Picraux. I wish we had more legislators like them. I know we do.
I think the legislature should take a long hard look at the Insurance division and how it is administrated or how it is not administrated. We, as taxpayers and clients of insurance companies have no recourse.
Posted by: Stephanie DuBois | Apr 26, 2010 5:18:41 PM
Mo Chavez announced at the beginning of the meeting that the parties reached an agreement. BCBS agrred to reduce their increase of rates by 3.3 percent. He said 21.3 percent across the board. However I think he meant 21.3 percent a steh average. So essentially there was no public input into the decision. Then after a description of the agreement they allowed public input. Many people got up and testified and Senator Feldman presented, as well as Danice Picraux and Lucky Varela. Jason Marks apologized to the crowd on behalf of himself and made some very strong statements regarding the process. Paul Bardecke representing BCBS, defended the agreement. Commissioner 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. People also complained about lack of access to information via the web site.
The idea that people were invited to submit and come to a public hearing and the decision was made in advance only further lessens peoples belief in government transparency.
Posted by: charlotte | Apr 26, 2010 5:22:28 PM
Actually they would not answer. It is interesting when the SOI reviews the rate increase he doe snot look at the parent company HCSC of BCBS-NM. Their surplus is $6.7 billion!! That is how much they have in reserves.
Posted by: charlotte | Apr 26, 2010 5:57:23 PM
