|
Greetings!
Are you a resident of the National Capital area? If you are, then believe it or not, you own an insurance company.
It’s true.
The considerable assets of the not-for-profit health insurance company CareFirst BlueCross BlueShield of the National Capital Area (which operates under the name “GHMSI”) belong to the public. And unlike for-profit insurance companies, GHMSI exists to serve the public.
But GHMSI declared earlier this week that proposed legislation that reinforces the company’s obligation to operate “in a manner that is in the public interest” represents an unreasonable and unwarranted intrusion into a “private company.”
If a company owned by the public refuses to operate in the interest of the public, there’s a problem--and it’s your problem.
Think of it this way: if GHMSI were a for-profit company, its profits and surpluses would benefit the company’s shareholders. In this case, residents of the National Capital area are the company's shareholders--and the company is withholding the public’s benefits.
A report issued by DC Appleseed last December showed that even though GHMSI could and should have spent at least $50 million last year on community benefit activities, the company spent only about $1 million.
What is GHMSI doing with the tens of millions of dollars its federal charter requires it to use to “promote and safeguard public health”? It is socking away huge annual surpluses that are far higher than any of its competitors--to make the company more attractive to potential buyers.
What could it be doing instead? For starters, it could increase the benefits in its health plans without increasing rates. Or it could provide discounts for subscribers with limited incomes. It could also provide health-related education for subscribers or the general public in its service area, and support other organizations that promote health in its service area.
So what are we going to do about it?
DC Appleseed is supporting legislation introduced by D.C. Councilmember Jim Graham that would require GHMSI to operate “in a manner that is in the public interest” and to do so “to the maximum extent feasible, consistent with financial soundness.”
You should too.
Get educated and get active. Read more about the legislation and the whole GHMSI issue in our latest DC Appleseed Blog entry, and contact your Councilmember to support passage of the legislation.
Help us spread the word by forwarding this email to friends and colleagues.
And please consider making a donation of $10 or more to help us continue our work on this issue.
Thanks for your interest and support.
Walter Smith
The DC Appleseed Center for Law and Justice, Inc.
|