Insurance Commissioner Wayne Goodwin got first-name
recognition from President Obama last Tuesday. Goodwin earned the accolades
for Blue Cross Blue Shield North Carolina’s (BCBSNC) acknowledgment that
existing individual insurance plans will not be available after 2013. With the
end of those policies, BCBSNC no longer needed to set aside reserves. In other
words, ObamaCare means you don’t get to keep your policy, but you get some of
your money back.
Goodwin described how he was able to persuade BCBSNC to give
a refund on his
personal blog, "I strongly
encouraged Blue Cross to
refund all of
the money back to policyholders and, after very thorough and rigorous review
and negotiations, the company agreed [emphasis in
original]." Coincidentally, the commissioner was reviewing BCBSNC rate
increases for these same policies. That may have provided Goodwin with
additional leverage
Blue Cross has consistently made clear that premiums for
individual policyholders will be higher from 2014, particularly for younger and
healthier people. In its proposed
7 percent rate increase last month, the company cited "[s]ome
provisions in the new law [that] will have an impact on 2011…rates. These
changes provide more benefits, but come at a greater cost. These changes
include unlimited lifetime maximums, enhanced preventive care coverage, and no
dollar limits for certain types of care…"
It’s not just individual policies, either. A recent survey
of companies showed that 90 percent of employer-sponsored plans and 80 percent
of self-insured plans will likely disappear by 2014.
So, well done, Wayne, but I’d rather Blue Cross kept my money and I be able to keep my
insurance. Since you’re on a first-name basis with the president, could you let
him know?
