Instead of restructuring the Medicaid paradigm by cutting payouts and denying frivolous demands, NC is looking at stealing money from an insurer. Yes, in yesterday’s Triangle Business Journal and today’s Herald-Sun, the scheme is outlined quite nicely.
Targeting only non-profit insurance providers, which happens to only apply to Blue Cross and Blue Shield (BCBSNC), the bill (HB1412) “imposes new regulations on how insurance companies’ capital needs are to be calculated and diverts excess funds into the trust, which would be set up by the state treasurer’s office and used for an insurance program operated by the state Department of Health and Human Services.”
The bill targets the Risk Based Capital of the service provider, capping their surpluses at $100 million. This may seem like a lot of money, but in the insurance game, it’s good to have some wiggle room. And besides, what right does the state have to confiscate and then redistrubute wealth at their own arbitrary liking?
An inside source has supplied me with BCBSNC’s reply to the bill. The reply is long, so I’ll highlight some points.
?’Our reserves protect our members in the event of unexpectedly high claims that could be caused by an emergency, such as a flu pandemic or natural disaster,? said BCBSNC President and CEO Bob Greczyn. ?They also allow us to invest in technology and improvements in customer service.”
And
“A separate proposal, House Bill 1441, would essentially put the commissioner of insurance in charge of the day-to-day operations of BCBSNC. The bill allows the commissioner to intervene in almost any aspect of the company?s operations ? a level of micromanagement that no other health insurer or any organization in the state would face.”
“And what rough beast, its hour come round at last,
Slouches towards Bethlehem to be born?”
Ah, I think it’s the spectre aptly named by Hayek.
