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Repeal Benefits Blue Cross Blue Shield

From The Post and Courier:

By Renee Dudley–Sunday, July 3, 2011

In 2006, the South Carolina Legislature repealed a decades-old insurance code, stripping the state’s authority to regulate discounting in contracts between hospitals and insurers.

The deletion allowed the state’s biggest health insurance company, Blue Cross Blue Shield, to negotiate contracts that could cripple its competitors and raise costs for consumers. And Blue Cross was among the special-interest groups lobbying for the repeal, according to a legislator who requested it.

Although the state apparently had not enforced that section of the law, the repeal stripped regulators of authority to step in if it became necessary to regulate anticompetitive activities.

The code appears to have forbidden types of “most-favored-nation” contracts with hospitals and doctors, which some economists said have played a significant role in driving up health care costs in South Carolina. (more…)

S.C. Ignores Federal Aid To Help Uninsured Get Coverage

From The Post & Courier:

By Renee Dudley

rdudley@postandcourier.com

Saturday, June 4, 2011

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The Haley administration is leaving hundreds of thousands of federal health-care dollars in limbo when the money could be spent right away to help uninsured residents, patient advocates said.

For the second time in recent weeks, advocates said consumers are being harmed by what they called politically motivated dallying, as the state fails to spend federal money it requested to implement health care reform.

At issue now is a $441,000 “consumer assistance” program intended to help South Carolinians learn about changes to health insurance and enroll some of them for coverage under the federal Patient Protection and Affordable Care Act.

The South Carolina Department of Insurance, which received the money from a federal agency in October, said it would use the grant to:

–Contract non-profit groups to help people enroll for coverage,

–Hire people to field and resolve insurance complaints using updated computer systems.

–Hold eight educational forums around the state, where officials would discuss health reform and hand out new pamphlets detailing changes.

More than seven months into the yearlong grant, officials from the state Department of Insurance, the agency in charge of the money, acknowledged they have made little progress.

In fact, the department seems to have reversed course, shunning the goals it had set out to accomplish in its September grant application submitted to the U.S. Department of Health and Human Services.

“The money is sitting there,” said Sue Berkowitz, an advocate for the uninsured who heads the Appleseed Legal Justice Center. “They’re not doing what they promised the federal government they would do when they got this grant.” (more…)

Hicks: Health-Insurance Fat Cats Driving S.C. To Poor House

From The Post & Courier:

By Brian Hicks

bhicks@postandcourier.com

Wednesday, May 4, 2011

These days it really pays to have health insurance.

But it pays much better to sell it.

Renee Dudley’s story in Sunday’s editions of The Post and Courier said that Blue Cross Blue Shield of South Carolina saw its profits rise 46 percent from 2009 to 2010, a time when most people were, well, bleeding money. Right now, Blue Cross Blue Shield has $1.7 billion in capital, nine times what is required by state law to pay for a large-scale disaster.

It’s great that they are doing so well — most customers would want them to have a better cushion than the state minimum. Of course, that might explain why so many board members and executives at the company got six-figure raises last year.

But it also raises another question: With that kind of cash in the bank, why has the insurance company seen fit to increase its premiums an average of 17 percent in the last four years?

(more…)

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