November 25, 2009

Blue Cross under investigation

Posted at 8:39 AM by Adam Linker

After 20 lawmakers filed a complaint about the anti-health reform campaign of Blue Cross, Gary Robertson of AP reported this:

The state Attorney General’s office confirmed Tuesday it was investigating North Carolina’s largest health insurer for prerecorded calls that started late last month. Based on a preliminary review, some calls linked to the company appear to have violated the law, according to a letter from a state attorney.

Company spokesman Lew Borman said Blue Cross officials provided information as part of the inquiry and are in discussions with Attorney General Roy Cooper’s office.

The disclosure came as 20 state lawmakers asked Cooper and Insurance Commissioner Wayne Goodwin to examine the calls and mailers urging citizens to contact U.S. Sen. Kay Hagan and ask her to oppose a new government-run health insurance plan.

Blue Cross, with 3.7 million customers in North Carolina, is a unique not-for-profit private corporation that pays taxes but benefited from a tax-preferred status for decades until the 1980s.

It’s not clear when the investigation will be complete, but the company could face fines if Cooper deems the calls illegal. A group that made unlawful automated phone calls to North Carolina voters before the 2008 primary was ordered to pay a $100,000 penalty.

The previous six-figure fine referenced in the story was handed out to the organization Raising Women’s Voices for not following proper guidelines in making automated calls. Initial investigations indicate that Blue Cross is guilty of similar violations.

From the AP:

Cooper’s Consumer Protection Division began investigating the so-called “robocalls” after a written complaint from Tryon resident Alfred Haskell, who wrote that the voice on the call “wanted us to influence Sen. Kay Hagan in a way that violates our beliefs.”

The Attorney General’s Office said for a robocall to be legal, it must clearly identify the caller, state the nature of the call and provide contact information.

“Our initial assessment is that certain calls purported to be made on behalf of (Blue Cross) do not appear to meet the third requirement,” Assistant Attorney General David Kirkman told the company in a Nov. 9 letter.

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6 Comments

6 Comments Add yours »

IBXer 25 Nov 2009 9:57 am

You left out this quote from the letter:

“Even if there is no apparent violation of existing statutes, we think this is bad public policy that deserves further scrutiny.”

Our government is nothing more than a bunch of bullying thugs.

Why are they trying so desperately to prevent citizens from receiving information and making up our own minds about our own futures?

Lou Meyers 25 Nov 2009 11:29 am

Speaking of bullies —– BULLY CROSS just got yanked into the Principals office AGAIN. They should have been expelled years ago for picking on sick kids and their families.

Fines don’t work with these guys—–the last time BULLY CROSS got fined for malfeasance they just passed it on to their policyholders who had no recourse but to pay up since competition was (and still is) virtually non existent. Meanwhile, the CEO and top executive perpetrators got to keep their jobs while rewarding themselves big bonuses. This has to stop!

The Strong Public Option would provide real competition and this what BULLY CROSS fears ——- actually having to EARN it’s money!
Fed Ex and UPS seem to be doing quite well along side the US Postal Service. Imagine what shipping rates would be without the US Postal Service.

It’s a government’s duty to protect it’s citizens. They are not the bully here —not by a long shot!

Tarchilles 28 Nov 2009 8:31 pm

I am very tired of being repeatedly outraged by BCBS. The compensation of the officers and directors of this non profit, especially given that it is actively working against the interests of its customer and its public purpose, is evidence of a conflict of interest. But rather than impotent indignation I suggest an active campaign to take over the board of directors and change the management of BCBS to return it to its mission of serving the citizens of North Carolina. Rather than assuming it cannot be done, start with the premise that it must be done and mobilize the handful of talented people of diverse backgrounds – legal, political, public relations, etc. – to achieve control of the board by any means necessary. Start with a review of charter, bylaws, tax status, and legal precedents. Might as well be bold and public in the effort with right, and the support of the majority of BCBS members and public opinion.

Stephen 30 Nov 2009 1:08 pm

IBXer, you are a tool.

IBXer 1 Dec 2009 11:53 am

Actually, Stephen, it is your side that is normally associated with tools… the hammer and sickle to be specific.

The Progressive Pulse – Blue Cross to North Carolinians: We think you’re idiots 19 Apr 2010 3:24 pm

[...] how could we forget the anti-health reform mailers, the anti-health reform robocalls that resulted in a $95,000 fine, and the planned anti-health reform commercials that were nixed [...]

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