The big blue bully

A bit of country wisdom came to mind, recently, as I watched the news about a high-roller insurance giant. The old saying goes, "Pigs get fat, and hogs get slaughtered." This adage, of course, speaks to the consequences of excessive greed.

Recent news, which most of you might have missed, likely because it was suppressed, is that Blue Cross Blue Shield of Alabama was part of a $2.8 billion settlement in a lawsuit brought by the insurance company's customers. That settlement is the largest health-related antitrust case in history. Of course, Big Blue never admitted to any bad behavior, which is par for the course when a case settles, but $2.8 billion is a lot to pay if you are innocent.

It is a safe bet that most of you reading this column are insured under a BCBS policy. That is because this insurance behemoth has 95% of Alabama's individual and group health insurance market. It is also a safe bet that about one-third of you with BCBS policies have had at least one claim rejected.

When a company has cornered almost the entire health insurance market and is rolling in enough cash to pay a huge settlement in a lawsuit brought by its own customers, why in the world would it fight a proposal to provide health insurance coverage to farmers and small businesses? A proposal that, if entirely successful, would not make a dent in your insurance business.

BCBS premium costs for policies under the Affordable Care Act have doubled since 2015. Yet, Big Blue is fighting tooth and nail to stop a legislative proposal allowing Alfa and Alabama Farm Bureau to offer healthcare coverage to families and small businesses that would save these folks 30% to 60% on insurance premiums. That could result in as much as $1,500 a month back in a family's pocket.

It is no surprise that Big Blue is running ads and lobbying the legislature with horror stories about what will happen if the Alfa plan becomes a reality. However, legislators and the public should consider the source.

The truth is these Farm Bureau health insurance plans have been around since 1947, and today, 10 states have passed similar legislation. The horror stories just do not exist in these states. The only story that is consistent is these plans provide big savings for people who cannot afford insurance or who are paying more for health insurance than for their mortgage.

Ironically, Blue Cross Blue Shield actually partners with Farm Bureau in three of the states that offer these more economical Farm Bureau plans. Despite this partnership in other states, BCBS of Alabama is fighting this health care benefit in our state. Most of you are probably thinking, isn't that hypocritical? Well, folks, it seems 95% of the market is not enough for this insurance giant.

Big Blue is using one of the oldest tactics in the political toolbox to attempt to kill the Alfa plan – they are trying to amend it to death. A kind of death through a thousand cuts.

One amendment is the very picture of the big hog at the trough. Big Blue is trying to make it a crime for a family to cancel a BCBS policy to enroll in the Alfa program. At some point, arrogance begins to feed the appetite. Surely, a Republican-led legislature is not going to make it a crime for consumers to choose the product they think is best for their families.

This year's legislative session is just underway, and there will be a lot of drama and political theater to entertain us. However, the spectacle of Blue Cross Blue Shield pretending it is defending working families, when in reality it is defending a 95% monopoly, will be something to watch.

To the average Alabamian, it seems untenable and almost absurd for BCBS to attempt to thwart the farmers in Alabama from having their own health plan. Young farmers in this state are striving to keep their family farms afloat and the high cost of health insurance is hurting them. All these farmers are asking is to be given a fair shot at bringing down their families' health insurance costs and getting out from under the thumb of the Big Blue bully.

Steve Flowers is Alabama's leading political columnist. His weekly column appears in over 60 Alabama newspapers. He served 16 years in the state legislature. Steve may be reached at [email protected].