Editorial: Stop the steal of your healthcare premiums

Blue Cross and Blue Shield of Alabama has introduced legislation this session to provide for the creation of a holding company for many of their assets that  are presently restricted by the Department of Insurance to move or use for for profit ventures. This structure has been in place for years to protect the people of Alabama from the use of their own premiums for ventures that have nothing to do with provision of care, paying claims, or providing a buffer for potential catastrophic claims. Those assets and excessive premiums collected by Blue Cross are supposed to be rebated back to the consumer. 

Over the past 35 years in which I have had Blue Cross coverage and been a provider within their network, I have never gotten any rebate of premium. In contrast, I have had a steady stream of premium increases like most everyone else in our state. USAA insurance who provides my auto and homeowners insurance has rebated part of my premium each and every year, with a recent rebate of over $4,000 dollars. 

The lobbyist for Blue Cross has made the ridiculous claim that Blue Cross is not obligated to provide any public good or concessions, when the entire history of Blue Cross was to care for patients in their community to have a way of payment for their hospital services in a cost effective way. It was never created to serve as a profit generating machine at the detriment of the consumer. 

This bill has multiple unintended or potential harmful long term effects for the people of Alabama. By creating a holding company that would receive the premium dollars that are earmarked for patient care, it will allow for the leadership of Blue Cross to further enhance the compensation of their own corporate officers, while providing absolutely no benefit to those that pay those premiums. 

Secondly, it will allow for further harmful vertical integration of the healthcare industry. In North Carolina, they have purchased acute care centers and other healthcare facilities, again reducing competition and causing healthcare inflation. This is exactly what has happened in North Carolina after passage of the identical legislation that is being proposed for Alabama.

Finally, if this type of legislation was not harmful, then why did the elected Republican Insurance Commissioner of North Carolina, Mike Causey, testify to the North Carolina legislature not to pass this harmful legislation.

It needs to also note that contrary to the claims by Blue Cross, that it will create jobs for Alabama, which is not true and furthermore it will not put Blue Cross in a position to be acquired. That will only happen if they want to be purchased and again could be addressed by the legislature.

We must stop this steal of our precious insurance and the premiums that have made Blue Cross successful. Please contact the Alabama Legislature to say no to SB 247.

Dr Randy Brinson, is a gastroenterologist in Alabama and former health care advisor for Governor Fob James of Alabama.