Blue Cross to refund $156M in N.C. Wow, Obama said HCR would bring down premiums. Who would have

[JohnWxy]

expected it this fast?!?


http://www.usatoday.com/news/nation/2010-09-21-healthinsurance21_ST_N.htm


Health insurance regulators in North Carolina have identified nearly $156 million in refunds owed to Blue Cross policyholders because of changes coming under the nation's new health law.

Consumers with policies at other companies across the nation also may deserve refunds, says North Carolina Insurance Commissioner Wayne Goodwin. He plans to urge other states to probe potential overcharging for a type of reserve fund.

The health care law will dramatically change how health policies are sold in 2014, and many plans in effect now will cease to exist that year in their current form. Yet state regulators who scrutinized a recent rate increase request by Blue Cross and Blue Shield of North Carolina say they discovered the insurer was collecting reserves to pay claims beyond 2014.

Discovering this took "heavy lifting" by financial experts at the department, Goodwin said, adding: "Since the passage of the federal health reform law we've ramped up our interactions with the insurance companies we regulate."
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I wonder if N.C. Republicans will still want to repeal H.C.R.?......yeah, who I am kidding? They'll still want to repeal. They'll get a $156 million contribution from Blue Cross N.C.....ha-ha-ha-ha... Corporate Serfdom, ain't it g-r-r-r-reat!?

[truedelphi]

1. Thank you for this report.

Sad that such refunds have to come to consumers based on what state they live in. California has some pretty shady types that might prevent this from happening.

[pnwmom]

2. K & R. nt

[bushisanidiot]

3. K&R

this, plus the report that premiums are due to come down in 2011 is GOOD news. And the republicons are vowing to stop it from happening by repealing the HCR. I'm sure that will go over well with voters.

[Alcibiades]

4. Another epic journalism fail by USA Today

WTF? Oh, they did mention that this was the product of an investigation by NC insurance regulators. They didn't mention that they APPROVED AN INCREASE!

This story was covered locally. Here's the second paragraph from the Durham Herald-Sun--not exactly a top-notch newspaper, BTW.

"The statewide insurer also received approval Monday from the N.C. Department of Insurance for a 5.37 percent rate increase for Blue Advantage. The increase was less than the insurer's request for a 6.97 percent increase and is the lowest rate increase for Blue Advantage in four years.

Blue Cross was also approved for its requested 2.06 percent increase for Blue Options HSA."

http://www.heraldsun.com/view/full_story/9600720/article-Blue-Cross-to-give-back--155-8-million-to-policyholders?instance=homethirdleft

Oh, and of course, the increases were blamed on the HCR, even though they have been increasing premiums for years.

The credit here should go to the North Carolina Insurance Commission, but this is hardly a windfall. As a NCBSNC policyholder, I will cash a check that I can then use to pay part of my premium increase. The premium increase is permanent, but the check will be gone quickly.

[JohnWxy]

5. And the premium increase is smaller than it would have been. Note that the article quoted in OP says

"Health insurance regulators in North Carolina have identified nearly $156 million in refunds owed to Blue Cross policyholders because of changes coming under the nation's new health law.

and..."Discovering this took "heavy lifting" by financial experts at the department, Goodwin said, adding: "Since the passage of the federal health reform law we've ramped up our interactions with the insurance companies we regulate.".."


...BTW, if you are getting a refund but don't like the fact that you aren't getting a refund that's bigger than what Blue Cross took in (in advance payments) ....I'LL TAKE IT!

[Alcibiades]

6. Oh, I'll take the check, thanks

It's just that the article didn't mention that there would be one, or its amount, or that BCBSNC has been carping about health care reform for quite some time. This is the same management that wanted to take it private.