From The Post & Courier:

Panel discusses future of federal health reform in S.C.

By Renee Dudley

In a meeting at the Statehouse last month, a small group of state officials, legislators and residents representing special interests gathered to decide how health insurance should be bought and sold in years to come.

The South Carolina Health Planning Committee, formed using a federal grant of $1 million, is charged with setting up a health insurance exchange — an online marketplace where an estimated 700,000 South Carolinians will compare and purchase health insurance policies when federal health care reform takes full effect in 2014.

So far, a chasm exists between the group’s rhetoric and the progress it has reported to the federal government, as officials tread a fine line between fulfilling federal obligations and appeasing political supporters who oppose health care reform, observers note.

In any case, the group’s efforts have set off alarms among some watchdogs and health care economists. Among their concerns:

• The committee is missing important early deadlines that could put federal grant money at risk.

• The panel’s one seat allotted for a consumer advocate is empty.

• The state’s giant for-profit insurer, Blue Cross Blue Shield of South Carolina, has a seat at the table, a seat it obtained after intensive lobbying killed legislation that would have limited its role in the debate.

Without a proper voice, prospective consumers — residents who now are uninsured and employees of small businesses — could be left to choose from among low-benefit plans that help insurers boost profits, watchdogs said.

And the state’s biggest insurance company would reinforce its already dominant position by helping oversee the exchange where its own products will be sold, they said.

“They’re going to want as much influence on that exchange as possible,” said Frank Knapp, president of the S.C. Small Business Chamber of Commerce. “They’re in business to keep out competition, and the exchange threatens that.”

Added Columbia health care consultant Lynn Bailey, “They want to make sure there are no rules they can’t finesse around.”

Asked for an explanation of its views on the formation of an exchange, Blue Cross Blue Shield released a statement and did not respond to requests for interviews or elaboration. “The development of insurance exchanges is a very complex subject. Blue Cross supports developments that are in the best interest of the people of South Carolina,” the statement said. (more…)

Filed under: Uncategorized | Tagged: Affordable Care Act, Ann Roberson, Bill Sandifer, Blue Cross Blue Shield, Gary Thibault, Gov. Nikki Haley, Harold Mitchell Jr., Health Care Reform, health insurance marketplace, John Ruoff, Lynn Bailey, Nelson Hardwick, Rob Godfrey, South Carolina, South Carolina Appleseed Legal Justice Center, Sue Berkowitz, Tommy Moore, Tony Keck | Leave a Comment »