October 22, 2008-Grand Forks Herald

Blue Cross Blue Shield of ND cancels forum amid contract talks
By Patrick Springer
The Forum - 10/22/2008 FARGO

Blue Cross Blue Shield of North Dakota abruptly canceled a media forum to discuss its financial status in the midst of talks with insurance regulators over the terms of its contract with medical providers.

Blue Cross Blue Shield announced Tuesday that the forum, scheduled for Thursday, was canceled, but gave no reason.

Last week, the Blues announced that a financial rating firm had downgraded the health insurer’s outlook from stable to negative. The Blues called attention to the more pessimistic outlook after its request for a 14.9 percent premium rate increase recently was denied.

Denise Kolpack, the North Dakota Blues’ vice president for communications, said the cancellation was due to ongoing talks with the North Dakota Insurance Department.

“We’re continuing to communicate with the Insurance Department,” she said. “We’re trying to find solutions on behalf of our members and providers. That’s really all I can say.”

North Dakota Insurance Commissioner Adam Hamm said he and his staff are involved in ongoing talks concerning language he objects to in Blue Cross Blue Shield’s contract with medical providers.

Earlier this year, the insurer announced it might withhold some payments to providers because of a budget crunch, saying its contract allowed it to do so.

Hamm has said the provision must go, since premium rate decisions depend largely on projections of payments to health providers. The Blues’ refusal to remove the language was “a big part” of the reason he denied its premium hike request.

Once it is, Blue Cross Blue Shield of North Dakota can resubmit its premium rate application. If unresolved, the dispute will go before an administrative law judge.

Jasper Schneider, the Democratic challenger who is running against Hamm, said the Blues might have canceled the forum to avoid the appearance that the rate dispute was part of the election campaign.