advertisement

Kane Co. preparing for battle with Blue Cross Blue Shield

A battle is brewing between Kane County and its insurance carrier over costs, and county officials are hoping to draft some allies into the fight.

With a $15 million annual cost, county officials say that price tag doesn't fit in with their goal of keeping the property tax levy flat. That leaves three options. Cut benefits. Raise the cost of those benefits to county employees. Or, get a better deal with Blue Cross Blue Shield, the county's provider.

Of those, a battle with an insurance giant seems the most difficult. But it's a fight county board Chairman Chris Lauzen and his fellow board members are ready to wage. Lauzen has already confronted Health Care Service Corporation CEO Patricia Hemingway Hall during a recent meeting. HCSC operates the Blue Cross Blue Shield Plan in Illinois and four other states.

The specific beef county officials have with the Blue Cross plan they have involves refunds and discounts medical providers give to patients. The PPO portion of the county's plan is self-funded. But the discounts and refunds county employees receive from medical providers don't go back to the county. They go to Blue Cross Blue Shield.

"You would think that we are paying the bill, so if there is a refund we should get that money, or if there is a discount, we should get that money," Lauzen said during a recent finance committee meeting. "It just doesn't make any sense."

Lauzen said Blue Cross Blue Shield has a plan framework that would return those savings to the county. But Lauzen said that plan, known as an administrative services only contract, is priced so high that "rational people" would never buy into it.

"So it's heads they win, tales we lose," Lauzen said.

Cristina Castro, chairman of the county board committee that oversees the county's insurance plan, said she supports Lauzen's push back even if it is an uphill battle.

"They are entitled to make profits, but at what cost?" Castro said at that finance committee meeting. "It's real easy to say cut, cut, cut on our end, but we may start losing employees. It's a difficult thing."

The answer, suggested county board member Brian Pollock, is rallying other local governments stuck in this same situation to also lobby Blue Cross to change its ways. Lauzen said he supports that idea, and the board should begin outreach as soon as possible.

Blue Cross Blue Shield Spokesman Michael Deering said the company values its relationship with Kane County, and it will continue discussions to address the issue.

Article Comments
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the "flag" link in the lower-right corner of the comment box. To find our more, read our FAQ.