Stifling Reform

It should come as no surprise that Blue Cross, a leader in health insurance practices that need to be reformed, is also leading the opposition to reform.

What Blue Cross Is Doing to Block Reform

Blue Cross has already committed $2 million for a campaign to stop health care reform this year in California.

Blue Cross calls its campaign "Coalition for Responsible Health Care Reform," and likes to show off its roster of insurance agent supporters.

Blue Cross has already run print and radio ads criticizing reform efforts and trying to make Californians afraid of change in the healthcare system.

Blue Cross also spends millions on lobbying elected officials in Washington and Sacramento. WellPoint Health Networks (Blue Cross' out-of-state corporate owner) spent $7.5 million lobbying Congress from 1998-2004, the second highest of any insurer.¹ In California, Blue Cross spent more than any other health insurer to lobby policymakers at the Capitol. In the 2005-2006 session, Blue Cross spent more than twice as much to lobby than most other large insurers in California.

Comparison of Lobbying Expenses²

Meanwhile, Blue Cross was the second-highest donor to political campaigns in the 2006 elections and has given the most money this year to candidates running for office.

Comparison of Campaign Contributions³

What Blue Cross Is Saying (about reform)

Here's an excerpt from the homepage of the Blue Cross/Coalition for Responsible Healthcare Reform website:

"As health care consumers, Californians simply can't allow ill-considered reforms to damage our health care system the way the state's rash deregulation of the energy market resulted in huge increases in electricity costs and blackouts a few years ago."

This is the core of the Blue Cross strategy: instill fear. No explanation of why health care reform has anything in common with electricity deregulation. No mention of the fact that the health care industry already is largely deregulated.

A second fundamental aspect of Blue Cross' opposition message is denial. Unlike over 80% of Californians, who say in poll after poll that we're moving in the wrong direction on healthcare, Blue Cross believes the move toward less (coverage) is more. From the Blue Cross/Coalition for Responsible Healthcare Reform website: "In recent years, the healthcare market has expanded to provide a wide choice of options -- provide families the coverage and products that fit their specific budget and needs."

To keep an eye on Blue Cross' anti-reform messages and our response, go to "You can see more of what Blue Cross is saying in their ads on their website. To see what Blue Cross means by what it says, "Blue Cross Ads: Fact Vs. Fiction."

You can also find analysis of the Blue Cross campaign from newspapers around the state on the Sick of Blue Cross News page.

What Blue Cross Is Afraid Of: Real Reform

Blue Cross is putting money into stopping reform this year, because real reforms are on the table. It's OUR Healthcare! and legislative leaders are taking a hard look at how our healthcare needs to be fixed, and those changes will force Blue Cross to make serious changes to its business model, which relies on:

Spending hundreds of millions of dollars that Californians pay for health insurance each year on high salaries, slick marketing and “dividends” to out-of-state corporate headquarters

Cherry-picking: denying coverage for pre-existing conditions and instead seeking to insure only the healthy

Selling insurance designed to provide limited benefits, coupled with high deductibles and co-pays

Raising rates however and whenever it chooses

California is considering -- and It's OUR Healthcare! is pushing hard for -- healthcare reform that includes insurance provisions with teeth. These provisions would put California at the forefront of the nation in terms of establishing fair rules for insurers and protections and cost controls for consumers. These reforms include:

Requiring that a minimum of 85% of every dollar Californians pay in health insurance premiums, be spent on healthcare (no more 'billion dollar dividends' shipped out of state).

Requiring that insurance be available to all Californians. No exclusions based on age or pre-existing conditions (no more cherry-picking, faux insurance for young people or no insurance for others).

Requiring justification in advance for rate hikes, and transparency about actual costs and prices from health insurers (no more 'because I said so' rate hikes).