The Effects of Health Care Reform on North Carolina Health Insurance Customers

If you live in North Carolina, health insurance and health care reform is just as big of a deal to you as it is to the rest of the world. We have a massive population of seniors in our area, many of whom are increasingly concerned about the rising costs of health care and whether or not they will be able to afford their North Carolina health plans. Now, we've all heard about health care reform, but it is an incredibly complex issue and many of us are confused by it. For instance, folks are concerned that health care reform would mean a complete government takeover of health care in which medical treatment would have to be rationed out; the end of Medicare; and the end of private insurance. These myths, generally speaking, are perpetuated by those who are profiting under the status quo and seeking to misguide people away from health care reform.

There are a number of special interest groups that are using the aforementioned scare tactics and myths to deter people from supporting health care reform. President Obama has guaranteed that a health care overhaul wouldn't force people like us to surrender the North Carolina health insurance plans we are satisfied with and wouldn't cut Medicare benefits. At the same time, Obama defended his call for a government-funded public health insurance option to compete against private insurers, indicating that Americans who liked their private plans could keep them, but they would have the option to sign up for the government plan. He said such an option would keep costs down, but wouldn't amount to a government health care takeover because private insurance companies wouldn't be able to compete with a government-funded plan. Obama gave the example of Fed-Ex, UPS and the Postal Service. He said that Fed-Ex and UPS are doing just fine, USPS is the one that's always having problems.

In an effort to combat what the Obama administration considers to be misinformation about the issue of health care reform, the White House has launched a Health Insurance Reform Reality Check Web site, which features Obama aides discussing aspects of health care reform. Those who back the health care overhaul believe that such a change is necessary to ensure that virtually all Americans have access to health insurance and that there will be long-term economic stability in our country. Because of stalwart opposition, however, congressional action on health care reform has slowed considerably.

The general basis for the opposition is that health care reform will inevitably lead to a government takeover of the entire health care system and prove too costly to sustain. As North Carolina health insurance customers, we can do our part by learning the facts and not contributing to false rumors that keep any kind of reform from progressing. Remember that despite what changes may take place in the health care system in the coming years, you can rest assured in knowing that your North Carolina health plans are safe and not going anywhere.

Paying for Health Care Reform with Medicare/Medicaid Savings

Here in Asheville North Carolina, health insurance reform is a huge issue as our local population consists largely of retirees, many of whom are becoming increasingly concerned about the cost sustainability of their Medicare and their North Carolina health plans. As health care costs continue to rise, reform is something the Obama Administration earnestly hopes to include in the 2010 Fiscal Budget. President Obama has identified savings which could constitute a reserve fund for the proposed health care reform plan. Approximately half of the funding would come from proposals to generate revenue, while the rest would come from Medicare and Medicaid savings.

Based on White House projections, the Medicare savings proposals would reduce beneficiary premiums for physician and outpatient services by about $33 billion over the next decade. As a result of these proposals, beneficiaries would also see an improvement in the quality of their Medicare services. The reserve fund includes a host of Medicare/Medicaid savings proposals, some of which include:

- Improving the accuracy of Medicare and Medicaid payments. The Centers for Medicare and Medicaid Services (CMS) would have to strengthen their integrity efforts in order to address flaws that have led to billions in overpayments and fraud each year.

- Reducing Medicare overpayments to private insurers would save taxpayers roughly $177 billion over 10 years, as well as reduce Part B premiums. This would be accomplished through the establishment of a competitive system in which payments are based on an average of plans' bids submitted to Medicare.

- Reducing hospital readmission rates and improving post-hospital care. The idea here is that a combination of incentive payments and penalties would lead to better care and fewer readmissions, which would save approximately $25 billion over 10 years.

- Expanding the Hospital Quality Improvement Program to improve quality of care for beneficiaries. This would be done by tying a portion of Medicare payments for acute in-patient hospital services to hospital performance on certain measures of quality. As a result of this effort, Medicare would save around $12 billion over 10 years.

- Cutting waste, abuse and fraud. When it comes to care, patients need quality, not quantity. Unnecessary treatments are not only expensive, but can also pose risks to patient health. To prevent physicians from ordering unnecessary treatment, the Administration proposes increasing scrutiny (through a pre-payment review process) in high-risk areas or for those physicians who order an excessive amount of high-risk services.

For residents of North Carolina, health insurance, Medicare and health care reform are no doubt important topics. As citizens directly affected by these potential changes in policy, it's important that you stay abreast of the facts, beware of misinformation surrounding health care reform, and show your support for legislation that speaks to your needs (which are probably not unlike those of many other Americans). If you are satisfied with your Asheville North Carolina health plans, rest assured in knowing that under Obama's plan, you would be able to keep your private insurance and continue seeing the doctors you trust.

BCBSNC Customers Save Millions and Stay on Medications with Free Generics Program

Chapel Hill, N.C. – Blue Cross and Blue Shield of North Carolina (BCBSNC) is helping customers save money and stay on their medications with the generic copay waiver program. BCBSNC customers saved at least $15 million in out-of-pocket expenses since the program started January 1, 2009. The program will run until June 30.

The generic copay waiver program is in effect until the end of the year for eligible customers taking generics to treat chronic conditions such as hypertension, congestive heart failure, high cholesterol and diabetes.
“In this tough economy, the generic copay waiver program allows BCBSNC customers to control out-of-pocket costs by using generic drugs,” says Ron Smith, PharmD, BCBSNC vice president of employer health and corporate pharmacy. “The savings our customers see through the program reaffirms that the generic copay waiver program helps people to better manage their health and not be forced to choose between medication and paying their bills.”
The 2009 generic copay waiver program applies to nearly 1 million BCBSNC customers and eliminates customer copays for covered generic drugs. Eligible BCBSNC customers include:

· Blue Advantage customers (once they meet their annual prescription deductible, if applicable).
· Medicare Supplement customers who have prescription coverage on their policies (once they meet their annual prescription deductible, if applicable).
· Members of insured employer groups (if their employer group has pharmacy benefits through BCBSNC).
· Members of self-funded employer groups (if their employer group has pharmacy benefits through BCBSNC and has chosen to participate in the program).

Generic drugs are equivalent to corresponding brand name drugs in active ingredients, dosage, strength, safety and performance, but they cost a fraction of their brand name counterparts. Since prescription drug costs are a key driver of rising medical costs, the long-term increased use of generics also impacts future premiums for the benefit to BCBSNC customers.

With or without the copay waiver, generic medications cost less out-of-pocket than brand-name medications. Generic copay waiver programs increase those savings and highlight the benefits of generic medications.

BCBSNC Opens 100,000-Square-Foot ‘Green’ Building

BCBSNC Opens 100,000-Square-Foot ‘Green’ Building
New Building (CSC2) will Reduce Energy, Water Consumption

•New building will use 65 percent less energy and half the water
•CSC2 is centerpiece of long-term effort to reduce environmental impact


Chapel Hill, N.C. –Blue Cross and Blue Shield of North Carolina (BCBSNC) opened its first environmentally friendly building named the CSC2. The new building will house about 550 current BCBSNC employees.

The five-story building, which includes a six-level parking deck to reduce land usage, will use 65 percent less energy and half the water per square foot compared with the company’s traditional office space.

CSC2 is a “smart building.” Motion sensors detect the presence of employees, turning on lights and HVAC systems. After a period of inactivity, lights and HVAC systems turn off, preventing unnecessary use of energy.

Low-flow plumbing fixtures will save more than 1 million gallons of water each year – enough to supply 10 families with water for a year. In addition, three 25,000-gallon cisterns, located under the parking deck, will catch rainwater. Together, they hold 75,000 gallons of water.

Drought-resistant trees and native plants featured in the courtyard reduce watering needs and provide a beautiful and relaxing outdoor space

“With this new building, we’re making environmental stewardship a central business practice,” said BCBSNC President and CEO Bob Greczyn. “We’re committed to setting a standard for others to follow.”

The building design promotes recycling and encourages employees to use carpools and fuel-efficient vehicles. The parking deck features covered bike racks and power for electric vehicles.

CSC2 is the centerpiece of a long-term effort to reduce the company’s environmental impact. BCBSNC has set corporate-wide goals to reduce its overall energy consumption by 25 percent and its water consumption by 20 percent by the end of 2010.

Current company-wide environmental initiatives include:
• Redesigning ventilation systems at all its major buildings to reduce water and electricity use
• Installing water-saving plumbing fixtures
• Using environmentally friendly cleaning products
• Placing prominent recycling centers in all buildings and on all floors
• Along with current aggressive paper and cardboard recycling, expanding efforts to collect plastic, glass, aluminum and other materials
BCBSNC is creating a sustainability project manual for all its building projects that includes requirements for use of recycled materials, rapidly renewable materials, proper disposal of construction debris and maximizing purchase of materials from regional sources.

When the company has several months worth of documented energy and water savings, as well as other demonstrated environmental protection measures, the facility will be ready to receive Gold certification under LEED (Leadership in Energy and Environmental Design).