Governor drops action against Blue Cross [Northeast Mississippi Daily Journal, Tupelo]

Oct. 31--JACKSON -- Gov. Phil Bryant has rescinded the portion of a controversial executive order he issued last week forcing Blue Cross to re-instate 10 private hospitals across the state into its health insurance network.

Bryant announced Thursday afternoon his executive order still instructs Insurance Commissioner Mike Chaney to investigate the dispute between Florida-based Health Management Associates and Mississippi-based Blue Cross & Blue Shield.

With the modification of the executive order, Blue Cross announced it has dropped its federal lawsuit against the governor contesting his authority to get involved in the dispute. Chaney also questioned the governor's authority, though his department already was conducting the investigation similar to what Bryant requested.

Earlier this week, U.S. District Judge Henry T. Wingate of the Southern District of Mississippi issued a temporary restraining order blocking the governor's actions. Wingate had scheduled a hearing on the issue next week.

The dispute arose when Blue Cross dropped 10 HMA hospitals from its network in September in midst of a disagreement over how much the hospitals should be reimbursed by the state's biggest provider of health insurance.

Blue Cross already has restored four HMA hospitals to its network, including Gilmore Memorial in Amory.

Democratic Attorney General Jim Hood had argued on behalf of the Republican Bryant that as the state's chief executive officer, the governor had the authority to enter the dispute. Hood and Bryant argued that by dropping the 10 hospitals Blue Cross's network does not provide adequate health care access as required by state law for its policyholders.

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