Blue Cross of California: If You're Late One Payment, We'll Drop You
UPDATE: Because of the huge public outcry, Blue Cross has backed off on the policy.
As I think I've pointed out before, most of the Blues are considered to be "non-profit" in order to get certain privileges. But they are usually just parent companies for dozens of for-profit subsidiaries - with whom they contract over-priced services to earn nice, hefty profits.
We can expect more abuses (and more price inflation) if the insurance exchange makes the same mistake and treats them as actual non-profits:
One of the worst abuses of the private insurance industry is known as recission, where insurers decide to revoke the coverage of their customers for frivolous reasons. The Los Angeles Times reports today that one of the nation’s largest insurers, Blue Cross of California, has “notified [its] policyholders” that their coverage could be “immediately dropped” if they miss even a single payment:
Amid a national debate on how to make the healthcare system friendlier and more accessible, and as millions of people grapple with the loss of jobs and homes, what does insurance heavyweight Blue Shield of California do? It decides to take a key benefit away.
The company has notified individual policyholders that their coverage could be immediately dropped if they miss a single payment — or so it seems. Blue Shield says in a letter to customers that they can reapply for insurance, but with potentially higher premiums and stricter conditions.
Thankfully, a California law that mandates minimum grace periods and a decision by the company that will allow for a 28-day grace period will keep Blue Cross from immediately dropping people from coverage, as their letter threatens. The LA Times goes on to note that the the company’s pronouncement comes “after last year’s announcement that Blue Shield and Anthem Blue Cross agreed to pay a total of $13 million in fines after cancelling the policies of more than 2,000 Californians after they became ill.”
It will be business as usual.
statusquObama, change you can only pretend in
. . $$$$$$$$$$
This is amazing news.
You mean a snake is actually acting like a snake???
(Nooooooooooo.)
Look...This is not new. I've been late on payments with Blue Cross and (gasp) I've been "reinstated".
Don't get me wrong. They're still evil...but its just the regular kind of Corporate evil.
And BTW, under LiebermanCare....They'll still be able to punish you for late payments.
Go figure.
"I can't keep doing this on my own with these...people."
premiums will be deducted from your pay before you get it, like SS and Medicare is deducted. And the premiums will be deducted from any other money you get that is reportable to the government, if necessary. If you think they are going to rely on each individual to make their payments, guess again. It is completely and absolutely outrageous that the US government is going to mandate that all citizens purchase health insurance from private companies, and to ensure that, they are utilizing the IRS to collect the money form the country's citizens.
Now that the insurance companies are confident that they own our bought-and-paid for Senate, a sizable portion of the House and the White House, they can finally drop that troublesome public pretense that they are anything other than the predatory, parasitical middlemen that they are, who provide nothing of value that couldn't be done better and cheaper if they didn't exist. Just in time, too! It takes time, trouble and money to maintain a pretense of responsible corporate citizenship, things that are better applied to profits and bonuses.
They drop people from coverage and team Obama will send in the IRS thugs to collect fines and penalties on past due fines.
A Win Win situation for these partners in crime.
I wouldn't be surprised if they threw people in jail for good measure. That then will be cheered as the next novel approach to providing health care coverage to those who can't afford it.
and the rest of us not far behind at the rate things are going nothing would surprise me.
Guess that would fix unemployment and that pesky minimum wage, too. What's the prevailing wage in prison these days?
First fines, then jail. "Debtor's prisons." Ring a bell? And it isn't a matter of not being an optimist. It's being a realist with open eyes and minds. An ostrich buries its head but leaves it's ass sticking up in the line of fire. Not a good position to be in, is it?
It's great. Government paid security services for corporations paid for by the potential criminals.
Welcome to America.
Vote GOP and move forward to the 18th Century.
Don't pay the legalized extortion under the individual mandate and Team Obama will send in the IRS to fine you.
Do you REALLY think they're on OUR side?
I guess the facts that don't fit your narrative don't deserve an update?
Blue Shield of California reverses course on its cancellation policy.
Hard to take you seriously when you are not tellling the whole truth?
"I know that there are people who do not love their fellow
man, and I hate people like that! " ~ Tom Lehrer (1928 - )
Never assume malice of thought when confusion will explain everything.
However, your link doesn't explain everything either.
The LA Times piece Susie includes does it somewhat better, here
The Blue Cross letter did not explain California law to the policyholders. The law requires minimum grace periods. Blue Cross previously offered a 28 grace period which for monthly payment is actually longer than required by law, they were apparently not changing that.
Plus they offer two additional 15 day periods per year, again more than required by law, which tack to the 28 days. Those two 15 day periods were what was being lost. Or so we are led to believe in the LA Times piece.
But that was not made clear, or so they say now, as Blue Cross sent out a highly confusing letter and few understood maybe including Susie. I am not so sure, just summing up the confusion.
Blue Cross reversed their highly confusing position again without, it seems, adequate explanation.
The entire point of health care reform is that there should NO HEALTH INSURANCE at all.
We as a society should firstly tend to the wellness of people, and then if they are sick, tend to their illness.
Health and well being should not have such an onus of confusion.
statusquObama, change you can only pretend in
no need for it now that the IRS will collect their premiums for them. However, their just thinking of that policy tells you where their minds are, doesn't it?
w/o being a dick? I'm totally shocked at your uncivil tone.
me-oww!
Perhaps Susie was unaware of the UPDATE (the definition of which, assumes that this is NEW information).
Rather than get unnecessarily pissy and assume bad faith, email the update to the site monitors and they'll get it to Susie.
I really don't understand your need for hostility. Are you on Blue Cross/Blue Shield's payroll and take personal umbrage? I personally can give you tons of anecdotal evidence from the research we've done on health care that will verify people being dropped if they get sick or are late in payment. Nicole Sandler on Randi Rhodes radio show yesterday talked about her own daughter being dropped by BC/BS for six months because of one late payment (interestingly, that didn't stop them from taking her checks during that time without telling her that her daughter was dropped).
Our commenting policy demands that you keep your tone respectful to other commenters as well as our contributers. My suggestion is that you do just that.
this is just the cost of doing business in this country. no big deal to them.
were applied. Can they write off the fines as a business expense? I'll bet they can.
It's my understanding that, as proposed, the Senate plan would even eventually do away with California's (or any state's) ability to require a 28 day grace period.
The Senate plan would permit Insurance companys to incorporate in any state they wished and to be bound only by that state's insurance laws.(currently the insurance company is bound by the state's law where they sell insurance...California, Jersey, Pa, pretty good laws....Texas, not so)
Eventually all the companies would migrate to the state or states with the most favorable (for them) laws. Good for the Insurance companys, bad for the consumer.
for Blue Cross/Blue Shield of Texas.
"That's fu*#ing retarded."
Big City Mayor
dollars, let them.
Do you understand how they work?
They get dropped in based on keywords that they scan on the front page of the site. That's why we periodically get ads for Coulter's latest book or for the Conservative Book Club.
Unless you want to start ponying up $$$ for a subscription to C&L to offset our costs, I'd suggest using AdBlock and not worrying about the Google Ads.
Blue Cross is already cancelling people in Michigan if they're a day late,
Hey! They have every right. Those people might get sick...and they didn't pay.
Those thieving bastards!!
Vote GOP and move forward to the 18th Century.
After I received this letter about 3 weeks ago, it had the intended effect (I about shit my pants), because earlier this year I'd had a premium increase, and after a mistake I'd made with my online banking payment, I'd under-payed one month by only $18. They'd sent me an ominous looking cancellation letter even then. But I'm grateful to know of the grace period law here in CA.
You know they really have us on a tight string, don't they. I just wish someone like Bill Gates or Richard Branson would step up and start an insurance company of their own, not based on profit, but on people. But then again who am I kidding...
Oh, wait. That would be single-payer. And we all know Big Insurance will not allow that. It's their country, you know.
You're so bitter! ;o)
C'mom...be happy. Smile. This is the best we could get! Howard Dean told us so!!
Vote GOP and move forward to the 18th Century.
"Blue Shield and Anthem Blue Cross agreed to pay a total of $13 million in fines after cancelling the policies of more than 2,000 Californians after they became ill."
Ooooooo, a whole 13 million. If you divide 13 million by 2000 you get $6500 per person. A healthy person could blow through that in a year with minor illnesses. Anyone want a bet they just raised rates or dropped even sicker people to come up with this cash? This country is so fucked.
The Board of Directors turned to each other and said..."How much you got on ya?"
Vote GOP and move forward to the 18th Century.
Hey, exactly my post!
For BCBS (or any of these companies) it's just a cost of doing business. When it's cheaper to pay the fine that's what they'll do.
Jail time, as one of the posters suggested, would put a stop to this pretty darn quick.
But at the very least the fine has to punitive enough to deter the crime.
onto the premiums. It's how they maintain an increase in profits every year. They are in health care you know. Their real business is maintaining a healthy profit margin. See how that works?
me-oww!
Roast in hell you ASSHOLES!
Don't worry about this stuff. With the insurance companies allowed to go across state lines...all these problems will go away. Remember, "a bill without a public option can serve the same purpose as the public option: namely, to force efficiency and competition."
Vote GOP and move forward to the 18th Century.
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