So it appears that my prediction that North Carolina's Blue Cross affiliate would skate on that penny-ante huge fine may have been premature. FoIB Jeff M tips us that:
"The N.C. Department of Insurance has levied a record $3.6 million fine against Blue Cross and Blue Shield of North Carolina for widespread problems that led to billing and enrollment errors"
Which seems significant, until we translate it to real-world terminology:
"The N.C. Department of Insurance has levied a record $3.6 million tax on Blue Cross and Blue Shield of North Carolina insureds."
That's because, as long-time readers know, companies don't pay these fines: their policyholders do. Every penny of that fine will now be passed along to the Blues' insureds in the form of higher rates.
Jeff also points out that the carrier will have no problem fronting the cash, "since they've not paid commissions since April, the money is there to pay the fine...and a whole lot more."
Heh.
"The N.C. Department of Insurance has levied a record $3.6 million fine against Blue Cross and Blue Shield of North Carolina for widespread problems that led to billing and enrollment errors"
Which seems significant, until we translate it to real-world terminology:
"The N.C. Department of Insurance has levied a record $3.6 million tax on Blue Cross and Blue Shield of North Carolina insureds."
That's because, as long-time readers know, companies don't pay these fines: their policyholders do. Every penny of that fine will now be passed along to the Blues' insureds in the form of higher rates.
Jeff also points out that the carrier will have no problem fronting the cash, "since they've not paid commissions since April, the money is there to pay the fine...and a whole lot more."
Heh.
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