To the editor:
There is a bill making its way through the General Assembly – HB 346/SB 296 – that would allow Blue Cross Blue Shield of North Carolina, a nonprofit hospital service corporation, to operate and invest like a for-profit entity. We’ve seen this movie before. BCBSNC tried a similar move in the 1990s and was rightfully met with pushback from lawmakers, consumers, and patient advocates. It wasn’t a good idea then, and it isn’t a good idea now.
Insurance Commissioner Mike Causey recently reminded lawmakers that “Blue Cross should not be able to invest with the freedom of a for-profit company because it is a fundamentally different type of entity.” He’s exactly right. BCBSNC is a nonprofit health insurer. That means that, by design, it isn’t accountable to shareholders; it is accountable to its members – the 4.3 million North Carolinians it serves. Its stated purpose is charitable in nature: “to improve the health and well-being of [its] customers and communities.” Therefore, any proposed changes to the way BCBSNC operates and is able to invest its assets should be closely scrutinized by lawmakers, and its members should be provided with ample opportunity to weigh in on the matter.
Instead of focusing on ways to further increase profits and expand its already dominant market share through the legislative process, BCBSNC should keep its attention focused on serving its members in the form of lower premiums, fewer out-of-pocket costs, and improved coverage and transparency.
Rob Bridges
Wake Forest
November 1, 2024
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2 Responses
It’s not “their money” John S, it’s “policyholders money” that hard working North Carolinians have paid into Blue Cross NC with their hard earned dollars for health insurance coverage with extremely high deductibles in many cases.
– Mike Causey
BCBSNC is a not-for-profit company, not a nonprofit company. There’s a difference. Nonprofits exist to benefit the public. Not-for-profits exist to fulfill the organizations objectives. Also, the NC DOI regulates the profit margin that BCBSNC must stay within. That means they must meet the minimum, while not exceeding the maximum. And it’s a tight margin. You can’t take away their ability to invest their money as needed in order to meet that the state’s requirement, AND mandate their profit margin.