NM Blue Cross Hikes Premiums Before Public Hearing

[Judi Lynn]

Source: Associated Press

NM Blue Cross Hikes Premiums Before Public Hearing
Posted: 11:48 am MDT April 27, 2010

SANTA FE, N.M. -- Blue Cross and Blue Shield and the New Mexico insurance superintendent have signed off on a rate hike on insurance premiums, less than an hour before a state Public Regulation Commission hearing to hear opposition to the plan.

Public Regulation Commissioner Jason Marks calls Monday's agreement a back room deal announced before the public had a chance to comment.

The hearing was called after a 24 percent increase in Blue Cross and Blue Shield premiums in December.

The revised rates allow the company to raise premiums by an average of 21 percent.

A spokeswoman says that will affect 40,000 New Mexico customers.

Read more: http://www.kfoxtv.com/news/23279227/detail.html

[elias7]

1. BC/BS is screwing everybody

avg 40% rise in individual rates in California earlier this year. Raising my rates 43% next month. Disgusting...

[DGG]

5. Blue Cross not one company

Blue Cross and Blue Shield are independent brand names (licensed through two separate organizations) used by a few dozen otherwise independent insurance companies in the U.S., some of them for-profit and some non-profit. Anthem Blue Cross in California is owned by Anthem/Wellpoint that aside from sharing a trademark and a desire to raise rates and top executive salaries has nothing to do with Health Care Service Corporation that owns New Mexico Blue Cross. This is obviously no excuse for what they're doing; I just wanted to point out that it's two different villains rather than just one.

[abq e streeter]

2. yeah, but at least it ain't socialism, er..communism, er..nazi-ism, wait, now I'm confused

What else would anyone expect from an insurance conglomerate? I don't know anything about Mo Chavez, the insurance superintendent, but disappointed to see that Paul Bardacke is working for Blue Cross now. He's a long time Democratic office holder in NM, including state Attorney General, and generally has been a reasonably progressive guy.I guess you take whatever gig you can but it's very disappointing. I wonder if our present Attorney General, Gary King,who is a man of a surprisingly high level of integrity for a New Mexico politician, has any say over this? Sounds like it's a done deal though.

[sumus]

3. So who got what?

This was, as a local NM official stated, a back room deal. The NM Public Regulation Division has never been know for its high ethical standards which leaves everyone wondering who got what for this action. In case you're wondering what keeps Blue Crosses costs rising this quote is from the ChicagoBusiness.com site. Blue Cross also upped Illinois rates but the Illinois regulators got a better deal than NM.

"Executives at Blue Cross & Blue Shield of Illinois' corporate parent pocketed big bonuses last year, as more people lost health insurance and rising premiums put insurers at the center of a political maelstrom.

Patricia Hemingway Hall, CEO of Health Care Service Corp., saw her total compensation jump 62% in 2009, to $8.7 million, according to a recent company regulatory filing. Predecessor Ray McCaskey's $15.7-million payment was bonus compensation built up in the years preceding his 2008 retirement. He served as CEO of the Chicago-based holding company for Blue Cross plans in Illinois, Texas, Oklahoma and New Mexico for 16 years.

All of the non-profit insurer's top 10 executives saw total compensation jump at least 48% — it more than doubled for six of them — thanks to large bonuses."

link to article http://www.chicagobusiness.com/cgi-bin/article.pl?articleId=33126

[abq e streeter]

4. I don't feel so bad now; must be hard to put shoes on the kids' feet for only 8 or 15 million bucks.