The TennCare Diaries

BlueCross has reserves of over $1 billion, larger than the reserves of state government," says Tony Garr, executive director of the Tennessee Health Care Campaign. They only have those reserves because of what they have charged the employers, employees and taxpayers of Tennessee. The state needs to get its act together and work with BlueCross to become a better corporate citizen. (From a Chattanooga Times Free Press article by Dave Flessner, 16 April 2005, titled "BlueCross profits set new mark")

Flessner does a good job in the Times Free Press story of providing all sides to the health care debate. In a nutshell, though I would not say Flessner would characterize it this way, BlueCross/BlueShield--a nonprofit--is making out like a Mexican bandit. Yes, Mexican. Because so many of my fellow Chattanoogans worry about "Mexicans" or "Latinos" getting on TennCare, not to mention the worry about those "jerks and thieves" stealing from taxpayers. Ah, but BCBS could never be seen as rapacious or predatory. Here are some facts that might change your mind from the article:

1. BCBS boosted its earnings by more than 52% last year, but of course BCBS overcharged "consumers with rate increases three times the rate of inflation."

2. BCBS made $154.2 million last year, but of course group employer contracts grew by 25% and premiums by 3x the rate of inflation.

3. BCBS achieved a 90% retention rate, but of course 2.8 million Tennesseans are part of BCBS which continues to reduce its reimbursement to physicians.

4. BCBS claims it lost $1.7 million on TennCare in 2004, but of course that loss will be mitigated as Bredesen is going to cut 323,000 enrollees from TennCare this June 1.

5. Tennessee will lose millions in matching federal funds because of Bredesen's plan, but of course BCBS will continue to gain in profits as it did last year with $154.2 million.