A personal blog of NC Insurance Commissioner Wayne Goodwin for folks interested in his work as state Commissioner of Insurance, North Carolina politics, history & current events, and the occasional literary reference.
Showing posts with label Blue Cross and Blue Shield North Carolina. Show all posts
Showing posts with label Blue Cross and Blue Shield North Carolina. Show all posts
As reported previously here at Wayne's World and around the State, two hundred fifteen thousand families and small businesses over the last two weeks have been receiving their historic $156.8 Million in refunds from Blue Cross Blue Shield of North Carolina, pursuant to a mutual agreement crafted in part by NC Insurance Commissioner Wayne Goodwin.
If you don't believe that the checks have literally been "in the mail" and are now in the hands of individual policyholders, then look at the accompanying picture of a refund check totalling more than $999! (Wayne's World appreciates a reader for emailing the photo.) And, if you need even more proof, check out the myriad comments linked here (go to the bottom of the previous page link) from a very diverse group of individuals representing every portion of the Tar Heel state. The good news has even caused quite the positive flutter on Facebook over the last two weeks.
Counting these most recent refunds, NC Insurance Commissioner Wayne Goodwin has been responsible for more than $900 Million in refunds and insurance rate cuts within his first two years in office alone.
"I'd say the work product of this office and the entire Department of Insurance has provided a tremendous economic stimulus package to North Carolina, in addition to vital consumer protections and a solvent, reasonably-regulated insurance market," said Insurance Commissioner Goodwin.
Insurance Commissioner Wayne Goodwin wants to remind North Carolinians that starting this week, approximately 215,000 Blue Cross and Blue Shield of North Carolina individual policyholders will begin receiving refund checks worth a combined $155.8 million. Pursuant to the September agreement reached with Insurance Commissioner Wayne Goodwin and the Department of Insurance, BCBSNC mailed the first batch of refund checks on November 29 to approximately 50,000 policyholders, and the remainder will be mailed no later than December 8.
"With folks preparing for the year-end holidays and taking care of expenses, I know these refunds will help families across North Carolina,” said Commissioner Goodwin. “I'm pleased that my staff and I were able to work with Blue Cross and Blue Shield of North Carolina to get this money back into the hands of thousands and thousands of our citizens."
The refunds will be issued to policyholders who had Blue Advantage or Blue Options HSA for Individuals policies in force as of March 23, 2010, the date the federal Affordable Care Act was enacted. Customers may receive lower or higher amounts depending on their specific premium rate, but an average policyholder with a monthly premium of about $380 will receive approximately $690.
The new rating and grandfathering rules in the Patient Protection and Affordable Care Act create a one-time circumstance enabling these refunds. The funds come from active life reserves, which are portions of the premium set aside in the early years of a policy to pay future claims and keep rates stable as customers' medical expenses rise during the life of the policy. However, policies purchased or substantially modified after March 23 of this year will end in 2014 under the new health care reform law, which is when the new products under health reform will be introduced. Therefore, the reserves held for these products will cover a much shorter period of time, allowing for these funds to be released.
Consumers with questions about the refunds, including whether they are eligible to receive a refund, should call BCBSNC's dedicated customer refund line, 1-877-784-2375.
Other insurance premium refunds that Commissioner Goodwin has announced include more than $50 million stemming from the 2009 auto rate settlement; Commissioner Goodwin has also announced potential rate savings for auto and workers compensation policyholders totaling approximately $673 million since 2009.
"I'm very pleased that consumers - North Carolina families and small businesses - have benefited so much by the insurance refunds and rate cuts of more than $800 Million announced during my first two years in office," said Goodwin.
Whether during the holidays or not, these monies are certainly an economic stimulus package for North Carolina, courtesy of the dedicated work by your Insurance Commissioner's team.
Wayne Goodwin, North Carolina's Insurance Commissioner, had quite the adventure on September 22.
On the heels of his joint announcement with Blue Cross Blue Shield CEO Brad Wilson two days ago, the state insurance chief responded to a request from the White House to travel to Washington, D.C., to discuss the $155.8 Million in refunds to 215,000 North Carolinians and the additional savings of $14 Million in health insurance rate reductions.
While heading into the neighboring Eisenhower Executive Office Building, he was surprised to be asked to participate in a press briefing with President Obama as a direct result of the refund news.
Further, Secretary of Health and Human Services Kathleen Sebelius - former Kansas insurance commissioner and Governor - praised Goodwin and North Carolina for such great news for Tar Heel consumers. For the occasion she asked him to sit near the front of the President's conference room.
Goodwin's most excellent adventure concluded as he was whisked to the West Wing of the White House, where he then proceeded to provide a press briefing to a bevy of national reporters and TV cameras. Coverage appeared in multiple national media outlets and various political pundit blogs, etc. The Raleigh News & Observer published an article about the day's activity. Entitled "Goodwin Basks in Spotlight of White House," reporter Alan Wolfe wrote:
Thanks to "providential" timing, N.C. Insurance Commissioner Wayne Goodwin was the center of attention at the White House today.
During a meeting of state insurance commissioners and Obama administration officials, the biggest buzz was Monday's news of Goodwin's agreement with Blue Cross and Blue Shield of North Carolina. The health insurer plans to refund customers $155.8 million and raise rates less than expected.
President Obama mentioned it several times as an example of the federal health overhaul spurring positive results for consumers. He also thanked Goodwin for his work with Blue Cross and told the group: "Well done, Wayne."
"I've met presidents before, but I've never been singled out by first name at the White House," Goodwin said by phone from the Washington airport.
"It's been a pretty good week for a farm boy from Hamlet," he added. "It was thrilling, informative and surreal all at the same time."
Goodwin, who isn't up for reelection until 2012, said the timing of Monday's announcement with Blue Cross was coincidental with the White House event to mark the six months since the health reform law passed.
The Raleigh article continued:
"The timing was just providential. I'm just proud that North Carolina and Blue Cross both were recognized as leaders in protecting consumers."
Goodwin also held a press briefing on the steps outside the West Wing this afternoon. Insurance commissioners from other states continue to ask him how he orchestrated the deal with Blue Cross and whether they can negotiate similar agreements.
"This is a great win for consumers and for state-based regulation," Goodwin said.
"(Today) is the next major benchmark on health care reform implementation, and the National Association of Insurance Commissioners was asked to meet with the president and his cabinet members to discuss it,” Goodwin said. “This was a bi-partisan effort, and I was able to voice some of my concerns about how important it is maintain the role of the states in regulating insurance for the consumers of America.”
Wednesday’s White House meeting came on the heels of an announcement Monday Goodwin and Blue Cross Blue Shield of North Carolina reached an agreement to refund $155.8 million to more than 215,000 individual policyholders in the state.
At Wednesday’s meeting, Goodwin said Obama lauded the effort and referred to Goodwin in a familiar tone.
... Some noted that meeting timelines for changes in the legislation would cost states significant resources, while the commissioner from North Carolina cited a benefit. Policies carrying excess contract reserves have been renegotiated at lower rates, bringing cost savings to participants, said the official, Wayne Goodwin.
The refund is a result of the White House’s health care reform, the Affordable Care Act of 2010, and is equivalent to more than 1.5 months of premiums. For the average policyholder, this means about $690.
That's not only quite a pleasant Christmas present and economic stimulus for North Carolinians, but significant enough to prompt an excellent White House adventure for this elected state insurance regulator!
North Carolina's state Commissioner of Insurance, Wayne Goodwin, today held a major press conference at his Raleigh office.
Joining him at the surprise press conference was Brad Wilson, CEO of Blue Cross Blue Shield of North Carolina.
Goodwin announced that expert actuaries in his office had discovered and determined, in the course of their regulation of the insurance company, that the federal Affordable Care Act freed up $155.8 million in contract reserves for return to policyholders.
"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. I commend Mr. Wilson and the BCBSNC Board of Directors for agreeing with this outcome and also the Department's proposal to reduce the rate filing Blue Cross Blue Shield had made," said Insurance Commissioner Goodwin.
He and Wilson described the day's revelations a "win-win" for policyholders and all involved.
For more information, go to the official press release from North Carolina's Department of Insurance. In part, it said:
The refunds will be issued by the end of the year to policyholders who had Blue Advantage or Blue Options HSA for Individuals policies in force as of March 23, 2010, the date the federal law was enacted. Refunds will be proportional to premiums paid and will be equivalent to more than 1.5 months of premiums. Customers may receive lower or higher amounts depending on their specific premium rates. For example, for an average policyholder's monthly premium of about $380, the refund would be approximately $690.
"I'm pleased that the Department and Blue Cross were able to identify a way for $155.8 million to go back into consumers' wallets," said Commissioner Goodwin. "I'm also glad that we were able to negotiate a lower-than-requested rate adjustment that will save $14.5 million in future premiums for policyholders."
Insurance Commissioner Wayne Goodwin later made it clear that but for this cooperation and decision reached by the insurer and the state agency, there would have been at least two court cases, the result of which would have certainly delayed by years any refund at all.
"Having this refund now is the right thing to do now. Policyholders and households need these significant refunds without any delay," said Goodwin. "I believe our work makes for quite an economic stimulus for the State - $155.8 million is nothing to sneeze at and will help families during the upcoming holiday season and end-of-year bills coming due for hundreds of thousands of Tar Heel consumers."
"I hope other state insurance regulators across the country look into whether these same excess contract reserves exist in the holdings of health insurance companies doing business in their states," he said. "Whether $1 or an historic amount like $155.8 million as in North Carolina, perhaps consumers and policyholders in other states are due refunds, too," Goodwin posited.
And as USA TODAY reported above, "Steve Larsen, who heads insurance oversight at the U.S. Department of Health and Human Services, said there may be others. "I really do think there may be a bigger issue at work here," he said."
North Carolina's insurance chief will ask the 2011 General Assembly for greater regulatory authority regarding health insurance.
"As our elected state Insurance Commissioner,I will continue fighting for stronger consumer protections ... Having these additions tools reinforce the value of state-based insurance regulation over purely federal regulation," concluded Goodwin.
Wayne Goodwin, now Chairman of the NC Democratic Party, served two 4-year terms as the elected Insurance Commissioner of North Carolina, and the State Fire Marshal. He also served four terms in the NC House of Representatives. Further, Goodwin was President of the Young Democrats of North Carolina and held countless other official capacities on the local, state and national levels. Wayne also served in the past as Assistant Commissioner of Insurance for North Carolina.
Wayne has created four successful small businesses, including two law firms and a consulting firm.
His wife, former State Representative Melanie Wade Goodwin, succeeded him in the General Assembly for three terms of her own. They have one daughter, Madison, and a son, Jackson, named respectively after the 4th and 7th U.S. Presidents.
NC Insurance Commissioner Wayne Goodwin has been responsible for more than $900 Million in refunds and insurance rate cuts within his first two years in office alone. 
