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NC Health Insurer Being Probed For Campaign Against Public Option

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Sen. Kay Hagan (D-NC)

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BlueCross BlueShield of North Carolina is being investigated by the state's attorney general for a recent mailer and spate of robo-calls in opposition to the public option, according to a company spokesman.

In October, TPMmuckraker reported that the insurance company had sent a mailer to millions of its customers asking them to urge the state's Democratic senator, Kay Hagan, (D-NC) to oppose a public option. The insurance company also deployed a related robocall.

Today, a group of 20 state legislators asked Attorney General Roy Cooper and Insurance Commissioner Wayne Goodwin to probe whether BCBS violated laws restricting robo-calls, as well as whether it engaged in political advocacy using the premiums of its customers.

But the probe the lawmakers are calling for appears to be underway already. "We received an inquiry from the AG's office a couple weeks ago," about whether the campaign violated laws, Lew Borman, a spokesman for BCBS of North Carolina, told TPMmuckraker. "We don't believe we broke any laws," Borman added.

The campaign to sway Hagan may have been misplaced from the start. Borman told TPMmuckraker last month that BCBS targeted Hagan because she hadn't yet committed to a public option. But Hagan helped write and pass the Senate Health, Labor and Education committee's version of the public option, which was stronger than the current Senate bill.

Here's the full text of the lawmakers' letter to Cooper and Goodwin:


The Honorable Roy Cooper
Attorney General
The State of North Carolina

The Honorable Wayne Goodwin
Commissioner of Insurance
The State of North Carolina

Dear Attorney General Cooper and Commissioner Goodwin:
In an apparent effort to maintain its dominance and control of the state health care market, BlueCross BlueShield of North Carolina has spent thousands of dollars paid by policy holders asking them to mail a pre-printed postcard to Senator Kay Hagan urging her to oppose health care reform and has engaged in automatic robo-calls urging policy holders to act on the mailings. This is most troubling to us as lawmakers and North Carolinians . We have heard from a number of constituents who are equally troubled. We have the following specific concerns.
We are concerned that BlueCross BlueShield of North Carolina has violated the intent of the Do Not Call Registry by using the exemption requiring a prior business relationship to engage in political advocacy. These robo-calls had nothing to do with providing care to patients, but were instead used to advocate a specific political stance. While we are strongly committed to the first amendment, we do not believe that policy holders intended for their relationship with blue cross to be used in this manner. We also believe BlueCross BlueShield has potentially broken the automatic dialing statute by not providing the contact information of the unsolicited caller in this recorded message. This lack of contact information appears to be in violation of federal guidelines surrounding automated calls as well.


Page II November 24, 2009
Attorney General Cooper
Commissioner of Insurance Goodwin

Further, given BlueCross BlueShield of North Carolina 's status as a not-for-profit with a share of 96.8% in our individual insurance market built on over 60 years of preferred tax exemptions, we are concerned as a matter of public policy and ethical business practices that they have inappropriately engaged in political advocacy. As a corporation that claims to deliver innovative health care products and services to its members, BlueCross BlueShield appears to be engaging in a blatant political campaign utilizing the premiums paid by their customers. Even if there is no apparent violation of existing statutes, we think this is bad public policy that deserves further scrutiny.
We would very much appreciate your respective offices investigating these issues for any potential violation of state laws or regulations.
Thank you for your service to our state.
Respectfully,

Sen. Stan Bingham Sen. Katie Dorsett Sen. Ellie Kinnaird
Rep. Alma Adams Rep. Larry Bell Rep. Angela Bryant
Rep. Susan Fisher Rep. Rick Glazier Rep. Pricey Harrison
Rep. Verla Insko Rep. Marvin Lucas Rep. Paul Luebke
Rep. Marian McLawhorn Rep. Grier Martin Rep. Garland Pierce
Rep. Ray Rapp Rep. Deborah Ross Rep. Alice Underhill Rep. Edith Warren Rep. Larry Womble

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13 comments

Recommend Recommend (3)

November 24, 2009 6:57 PM   

BlueCross BlueShield is a medical insurance company therefore they can do anything they want. They are above the law. They can raise rates anytime they want. They can dump their customers anytime they want. Sounds like a perfect investment. Just the way I see it.

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November 24, 2009 7:32 PM   

This is terrific pushback -- and it seems the law was violated as concerns the robo-calls.

Whether it's illegal to use premiums to politic I don't know, but it certainly shows where the company is at morally, and in relation to the sources of those premiums. These assholes spend more money lobbying against their insureds than they pay out to insureds with valid claims.

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November 24, 2009 8:09 PM   

University of East Anglia's Climate Unit ?
The lid is off and he lies are out there.
You know that funny southern boy that ran for president and lost because he lied about inventing the internet?
He has not changed. His made up story about global warming has come to light.
The meathead media will pretent it does not exist, but will use the children in the federaly funded whore houses on a regular basis.
Our economey will not recover until the truth comes out about these huge Obama/Gore manipulation of data.
see Wall Street Journal: Global Warming with the Lid Off

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November 24, 2009 9:01 PM    in reply to inokeah

You clowns have been trying to get the blogosphere to bite on this drivel for a few days now, if you think you will convince anyone here that stolen emails from a couple scientists somehow disproves global warming, you are deluded.

I hear that you are all members of that new right wing think-tank, Spamtrolls Totally United Promoting Ignorant Deception.

S.T.U.P.I.D

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EH

user-pic

November 25, 2009 1:30 AM    in reply to JEP07

no no, it's the lack of emails that *causes* global warming. the more emails we have, the less global warming there will be. simple.

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November 25, 2009 10:24 AM    in reply to JEP07

LOL

I like that may i use it in other post?
the S.T.U.P.I.T

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November 24, 2009 9:06 PM    in reply to inokeah

Isn't there a moderator here to remove incoherent off topic crap like this?

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November 25, 2009 7:45 AM    in reply to inokeah

Given your lack of facility with spelling, grammar and punctuation, it's no wonder that you fall short in the Critical Analysis and Fundamental Logic departments as well.

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November 24, 2009 8:49 PM   

Maybe they should lose their tax exempt status?

OK, so I know they aren't a religion, but I bet they have a tax exempt status somewhere called a loophole.

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November 25, 2009 9:35 AM    in reply to JEP07

They are described as "not for profit" I'm sure that gets some bennies for them, including huge salaries and bonuses from all the $$$ they cheat their "insureds" out of.

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November 24, 2009 9:04 PM   

'utilizing the premiums paid by their customers.'

ARRGGHH! Thar's the moneyline, mateys!

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November 24, 2009 9:13 PM   

They have, along with MLB, an exemption from anti-trust laws. House bill stripped this away, but senate bill does not, due in large part to Senator Nelson (D-whocares) in return for voting for cloture. Kind of an expensive trade.

I think (as we move forward in our plans to force JEP07 to pay for my girlfriend's abortion and take his guns away) we should really be forcing the issue on the anti-trust exemption. Insurance companies are much more nervous about that than the public option.

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November 25, 2009 9:17 PM    in reply to mass_murdock

I am with you. I bet they care about that anti-trust legislation. That was all the talk for, oh, let me see, 10(?) hours?

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