Tuesday, May 30, 2023

State Treasurer Dale R. Folwell Urges Immediate Pause on Blue Cross Bill

Policy Holders and Customers Deserve to Be Protected
Raleigh, NC
May 30, 2023

As the largest customer of Blue Cross Blue Shield of North Carolina, I am asking that the sponsors of House Bill 346 request the bill be removed from the Senate calendar until the amendments offered by elected State Insurance Commissioner Mike Causey to protect consumers be considered.

Blue Cross Blue Shield has had a monopolistic market share for decades as well as a preferred status among state insurers. This has resulted in Blue Cross Blue Shield accruing billions of dollars of reserves that rightfully belong to policy holders who have been punished for decades with higher premiums and declining customer service. 

Rewarding Blue Cross Blue Shield’s administration for its lack of attention to detail would only incentivize additional bad decisions.

Blue Cross Blue Shield failed to submit a winning bid for a Third-Party Administrator contract with the State Health Plan, its largest customer. The task of future oversight, not less review, and the protection of consumers are even more pressing now given that Blue Cross Blue Shield always faces the possibility of losing more large customers.