Congressman Ted Deutch and other members of Congress have asked US Department of Health to intervene since Florida’s GOP state controlled legislature decided to pass legislation that would stop the Office of Insurance from negotiating any new insurance plans under the Affordable Healthcare Act. The Act itself would assume that the state would continue to lead on setting these rates. State even had the opportunity to use grant money to assist in the process. The federal government does not have the authority in setting such rates across the state. That job is only designed by law through Florida Insurance Commissioner Kevin McCarty.
We applaud all of the Congressmen and Congresswomen for standing up for the public on this issue.
At the same time, the GOP led US House again tried to repeal the healthcare plan….for the 40th time. So what’s the problem? President Obama has said numerous times there are things to tweak with the plan but the core of his landmark legislation will cover individuals with pre-existing conditions that would have normally been denied. It will give quality care to those who never had coverage.
As healthcare advocates and states prepare for new changes, a monkey wrench has been thrown into the process. Last state legislative session, while the appointed OIR gave up his powers in a partisan move to hurt the new law that Congressional officials are asking to investigate, an amendment was passed to extend Blue Cross and Blue Shields powers both financially and politically.
The largest private insurance company, which covers an estimated four million Florida policy holders, and also the largest political donor to both parties, has received a gift from legislators. A gift that is meant to undermine the policy holders and sabotage the Affordable Healthcare Act. The amendment by State Senator Joseph Abruzzo (D-Wellington) would allow Florida Blue to change from a non-profit to a mutual holding company. This secret amendment itself had little debate and no staff analysis. Off record, most elected officials have said they didn’t know that they even voted for Amendment SB356 by Abruzzo. Despite numerous attempts for comment, Mr. Abruzzo continues to not respond to the press about why he was duped by a lobbyist or to even rationalize how and why he duped Floridians himself.
The amendment would destroy the very concept of the Affordable Health Care Act, requiring Florida Blue to spend 80-85% on better care. Under the federal law, they would have to refund the money if they are not in compliance. To add insult to injury, the Koch Brothers’ front organization, Americans for Prosperity, is using the Abruzzo amendment as a pretext to protest BCBS in Miami and blame the President for this deceit.
It is time to protest Blue Cross and Blue Shield and expose the State Senator who added the amendment to a bill separate from OIR partisan legislation. There is still an opportunity to have Abruzzo reach out to OIR Kevin McCarty, Governor Scott, Attorney General Pam Bondi and CFO Jeff Atwater to either release Mr. McCarty from his duties or simply refuse the Blue Cross reorganizational plan. Right now under existing law, Mr McCarty can do what is right. It needs to start with Mr. Abruzzo.
Background:
Florida Blue has given $4.8 million in campaign contributions during the 2012 election cycle. That includes $2.4 million for the Republican Party of Florida, $699,184 for the Florida Democratic Party and $400,000 to a fundraising group associated with Scott.
Call State Senator Abruzzo-(561) 791-4774
Call Kevin McCarty OIR
(850) 413-3140
The Florida Squeeze 
I cannot believe the republicans are this corrupt. Then again they are Florida republicans accustomed to one party control and no accountability.
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Shameful Abruzzo’s involvement is.
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Sadly, This is not Blue Crosses fault. I don’t blame Blue Cross. Blue Cross could have used and had their pick of any Republucan whore that they had in their back pocket. It was smart to use a stupid Democratic whore in Sen Abruzzo to say, “See even Democrats don’t want Obamacare to succeed!”
It’s brilliant.
And of coursed Sen Abruzzo is the village idiot here.
How much Blue Cross money did he get? As you say, follow the money!
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This post is woefully inadequate and should not have made it past Kartik Krishnaiyer’s attention.
FIRST, the post is titled “Florida Blue Giveaway – How did it happen?” Yet, the first paragraph only has a peripheral connection to the question and the second paragraph has no relevance whatsoever to the overall story. In fact, the post never explains the legislative process and consequently neglects to answer the principle question. For example the author could have asked, why were the modifications introduced as a committee amendment, withdrawn the same day and then reintroduced later as a floor amendment? Perhaps someone with more legislative experience can help us understand why this happens, and perhaps someone with more serious investigative intent could research what happened between the two actions.
SECOND, the post states, “…an amendment was passed to extend Blue Cross and Blue Shield’s (“Florida Blue”) powers both financially and politically.” I would expect such a charged statement to include at minimum: 1) a hyperlink to the enrolled bill (http://www.flsenate.gov/Session/Bill/2013/0356/BillText/er/PDF); 2) a reference to specific bill language explaining how it uniquely (and exclusively) benefits Florida Blue; and 3) a reference to specific bill language itemizing the new and accrued financial and political powers.
THIRD and MOST IMPORTANTLY, the post states, “The amendment by State Senator Joseph Abruzzo (D-Wellington) would allow Florida Blue to change from a non-profit to a mutual holding company.” So what? Perhaps someone can help us understand why this reclassification is so devious; what are the legal distinctions and how do they negatively impact the access to and cost of health care delivery in the state of Florida?
FOURTH, the post describes the floor amendment as a, “…secret amendment.” This is dishonest as there are specific parliamentary procedures for introducing and adopting floor amendments. It appears that the floor amendment was properly adopted. Does the author have specific information that supports some type of secret, and therefore, illegal activity?
FIFTH, the post states, “To add insult to injury, the Koch Brothers’ front organization, Americans for Prosperity, is using the Abruzzo amendment as a pretext to protest BCBS in Miami and blame the President for this deceit.” Why I am not surprised that a post plagued with such lazy reporting includes a reference to the Koch brothers? Perhaps any explanation as to how the Abruzzo amendment is being used as a pretext would have been helpful. Or even an explanation as to why the Koch brothers are protesting ‘BCBS’ in Miami.
I have previously challenged Mr. Krishnaiyer for making unsubstantiated insults and accusations on the subject of school choice but this post is ridiculous.
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One party state.
Despite the bad grammar, poor word usage and rambling diatribe here a point exists.
Joe Abruzzo, a Democrat with a left of center voting record did the bidding of the Insurance industry to give them the ability to raise rates on millions of Floridians.
Why more Democrats have failed to challenge Republicans on these sorts of issues is criminal in itself and means we ought to simply dissolve the opposition in the Legislature. No point exists to them.
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Abruzzo needs to step up to OIR and the rest of the bunch. I guess that is what happens when Democrats elect DS that are Rs. He did draw his own seat.
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This is an honest question … will someone please explain to me how changing from a non-profit to a mutual holding company effects the regulation of Florida Blue is such a way that enables them to raise rates? Everyone here has something to say about complicit Democrats but no one is explaining to someone like me the technical points of why this change is so devious.
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