By Dale Youngern
GRAND FORKS -- Adam Hamm, North Dakota's insurance commissioner, has decided against Blue Cross Blue Shield of North Dakota policy holders and North Dakota taxpayers. He had done this by granting a 7.9 percent increase in the rate the Blues can charge their policyholders.
Even though the national economy is "tanking out" and the federal unemployment figures have skyrocketed, the commissioner has decided it's time for the Blues to "lay it on" the company's customers one more time.
He doesn't understand that North Dakota taxpayers take a hit as well.
North Dakota's entire state government, including the governor's office, the insurance department employees, the Department of Transportation, the state tax department and other agencies, bureaus and so on, are all insured by the Blues with the North Dakota taxpayer footing the bill.
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How this can happen when the Blues supposedly are run by a board of directors who should have the policyholders' best interests at heart?
According to past news stories in the Herald, the commissioner has been quoted that he has the "big hammer" and "thus, the Blue Cross Blue Shield is regulated in the state and North Dakota is the regulator." He has also said that a "target financial examination" of the company has been ordered by him.
This exam now is underway, although the results apparently will not be known until later this summer. After the commissioner's office has finalized their exam, the Blues will have 30 days to dispute and argue the results of the exams.
The question now becomes who is sleeping with whom.
The point of all this is that after finding out the actions of the Blues board (which allowed such gross mismanagement to happen) and before his examination has been completed, the commissioner has now granted the rate increase.
I understand from the commissioner's office that without a rate increase, the Blues could continue to lose $3 million to $4 million a month. But instead of cleaning up this quagmire in Fargo, the commissioner has added to it with his rate increase decision.
We now know that the time has come for the policyholders and taxpayers of North Dakota to arise from this abyss and demand an end to such injustices and irregularities that have transpired.
A new policy for the Blues has to come forth soon, including a reorganization of the board with sensible people, so that the whole Blue Cross Blue Shield organization in North Dakota doesn't have to elect Chapter 11 of the bankruptcy code.
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Youngern is a retired certified public accountant.
