GREENSBORO, NC – North Carolina Governor Roy Cooper signed into law Saturday a bill that would allow the state’s top health insurance provider to reorganize despite requests from other law enforcement officials to prevent block this suggestion.
The new law, passed by the GOP-controlled General Assembly with overwhelming bipartisan support, allows North Carolina’s Blue Cross and Blue Shield and a dental insurance provider to turn assets into a corporation. mother that the state insurance commissioner has warned could move. money with little supervision. The law takes effect immediately.
“Our goal is comprehensive health coverage with access to care in every county in our state at the most affordable cost possible, and this law with its consumer protections intended to keep the company strong while remaining committed to its North Carolina home,” Cooper said.
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If Cooper opposes the measure, however, there may be little he can do to stop it. Republicans have held a veto majority in both chambers since a Democratic state lawmaker switched parties two months ago.
Blue Cross, the state’s dominant insurance provider, and Delta Dental are now allowed to move money, property, and other investments from their existing hospital service companies to new shell companies due to same executive leadership.
State Insurance Commissioner Mike Causey opposed the measure as it passed through the legislature, arguing that it would limit his regulator’s ability to ensure the holding company acts in the good interest. most of consumers.
Blue Cross, a fully taxed nonprofit, argued that the reorganization would give it more flexibility to compete with for-profit rivals and expand its services to more more community. Spokeswoman Sara Lang applauded the governor and General Assembly Saturday for passing bipartisan legislation that she said would help the insurer “address our state’s growing healthcare needs.” me.”
“Blue Cross NC will continue to listen to and support the communities we serve, seeking to deliver tailored solutions and meaningful partnerships to support our customers and our state’s economy.” me,” she said in a statement.
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The law requires the holding company to invest in organizations that promote affordability or “contribute to the health needs of North Carolina residents.” It also limits the amount of “admitted assets” that the insurer can transfer to the parent company at 25%.
The parent company must also submit annual audited financial statements to Causey’s office, revealing the remuneration of the highest-paid executives and disclosing “strategic investment activities.” mine.
But Causey said Blue Cross still has a lot of flexibility under the law to use money he says belongs to North Carolina fee payers for personal gain.
He and State Treasurer Dale Folwell took the unusual step of a public meeting of the State Council on Tuesday to directly ask Cooper to stop the current measure and review the amendments Folwell said were needed. necessary to protect consumers.
“I am still hearing from people all over North Carolina who are very interested in that bill,” Causey told the governor. “In my opinion, it didn’t have a fair hearing in both houses because of the political pressure Blue Cross has exerted to get it passed.”
Blue Cross is an influential player at the General Assembly, which has more than a dozen registered lobbyists. Its PAC staff gave more than $250,000 to legislative campaign committees by 2022, according to reports filed with the State Election Commission.
