At State Hearing, Blue Cross Consumers Criticize Insurer's Abuses and Profiteering
FOR IMMEDIATE RELEASE |
Contact: Nick DeLuca |
LOS ANGELES – At a public hearing today, California healthcare providers and consumers testified about the way Blue Cross of California’s business practices have hurt individuals and damaged our healthcare system.
Before the hearing, advocates and concerned Californians protested Blue Cross’ efforts to undermine healthcare reform in California by investing at least $2 million in an ad campaign to make people afraid of reform.
“This hearing showed the need for more aggressive oversight over Blue Cross and other insurers, from not just regulators but legislators,” said Anthony Wright, Executive Director of Health Access California. “Blue Cross’ motives in opposing health care reforms became clearer, as they seem to disproportionately profit from the status quo.”
It’s OUR Healthcare! coalition members, advocates, and Blue Cross members called on the state to take a hard look at Blue Cross practices, including: shipping almost a billion dollars from healthcare in California to its out-of-state corporate parent in the last year alone, not to mention other transactions that advocates are questioning; denying coverage for people with pre-existing conditions; dumping people from its policies once they get sick; promoting policies that provide inadequate or enormously expensive coverage, and apparently violating its agreement with the state, signed in 2004 when the company ownership changed hands, not to strip-mine California healthcare consumers for the cash it needed to fund the buyout.
“What’s most disturbing, however, is that that the current system requires so little of health insurers,” said Wright, “Of course, we want the state to hold Blue Cross accountable for its performance in relation to the agreement it signed in 2004, but ultimately we need much stronger oversight and rules governing the insurance companies to make sure that profits don’t get put before people.”
“I have Blue Cross insurance that I thought would protect me when I got sick,” said Jan Stephens, Blue Cross member. “I was wrong. I pay $589 a month for my coverage – but it doesn’t cover the medicines I need. So I pay hundreds more every month for prescriptions; so much, that I’ve put my wedding ring up for sale, to help pay for my medicines.
According to state statistics, Blue Cross spends a lower share of every premium dollar on healthcare than any other major insurer in the state.
“Today’s hearing is a good start,” explained Health Access’ Wright, “but we can’t be satisfied with the occasional hearing or fine. The Governor and the Legislature need to make sure that the legislation they pass addresses the core problems of what is currently a virtually unregulated insurance market. We need our elected representatives to stand up to Blue Cross, and stand up for all of us – and that’s the message we’re asking all Californians to send to Sacramento now.”
It’s OUR Healthcare! advocates also presented the state Department of Managed Health Care, with a petition urging the state to crack down on Blue Cross’ bad practices and get back that health care money shipped out of state. In less than one week, more than 1800 Californians had signed on, online. The petition, and more information on Blue Cross are available at www.SickofBlueCross.com.
It’s OUR Healthcare! is a coalition including organizations representing more than 10 million Californians, including AARP, ACORN, Consumers Union, the California Council of Churches, CALPIRG, Service Employees International Union, the National Council of La Raza, and over 90 other groups. More information is available at www.ItsOURHealthcare.org.
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August 7, 2007 at 03:30 PM | Permalink | Blog Reactions
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