Mark Smith, president of the California Health Care Foundation, says WellPoint wanted to buy up Blue plans in other states so they could sell their insurance products to national companies. Blue Cross of California was the first to do so and became WellPoint Health Networks. For the first time, they would allow their franchises to convert from nonprofit charities to for-profit public companies. So in 1994, the Blue Cross Blue Shield Association made a big change. If they became for-profit, publically traded companies, they could sell stock and raise a lot of cash. She says many Blue plans saw the stock market as their savior. VARNEY: Laurie Sobel is an attorney with Consumers Union. LAURIE SOBEL (Attorney, Consumers Union): There was basically mounting pressure from the plans that wanted to become for-profit. Even so, Blue plans around the country were losing market share. In response, most Blue plans started charging sicker and older people more. These new insurers who didn't offer universal coverage attacked younger, healthier people with better deals. Because the Blues accepted all comers, regardless of health status, their rates were typically higher. VARNEY: By the 1970s and '80s, though, Blue plans faced competition from for-profit insurance companies. FAHEY FLYNN (News Anchor): How do you do, ladies and gentlemen? I'm Fahey Flynn with tonight's CBS News Special, brought to you as a public service by Blue Cross and Blue Shield. The Blues became one of the most trusted brands in America. All members paid the same amount no matter how old or sick, and no one was turned away. Boy Scouts handed out enrollment brochures and preachers urged their congregation to enroll.īlue Cross and Blue Shield plans formed as not-for-profits to give communities access to medical care and protect against personal financial ruin. SARA VARNEY: It may be hard to imagine now, but back in the 1930s, membership in a Blue Cross plan was practically a civic duty. Yet, when it started, Blue Cross had a charitable mission.įrom member station KQED, Sarah Varney looks back. Those in favor of the health care bill pointed to this increase and said that's what happens when regulators can't control the insurance industry. and a Master of Business Administration from Iona College in New Rochelle, N.Y.Some political theater recently in Congress focused on Anthem Blue Cross of California, an insurance company raising its rates nearly 40 percent. Patella holds an undergraduate degree from Pace University in Pleasantvi lle, N.Y. “Matt’s experience is sure to lead to positive client experiences and productive working partnerships for those we serve.” “Matt is going to be a wonderful addition to Prime as we bring together the brightest minds in health care to transform the industry and deliver new value,” said Dave Schlett, executive vice president and president of PBM solutions for Prime. He has held other sales leadership positions at WellDyne, Vital Decisions and Express Scripts/Medco. Most recently he was area vice president with global insurance brokerage firm Arthur J. Patella brings previous health care, consultant and PBM leadership experience to his new role at Prime. Patella will be responsible for the employer group market sales strategy including growth and retention. Patella brings more than 20 years of sales leadership including account management and new business development to his role. EAGAN, Minn. – Prime Therapeutics, a pharmacy benefit manager (PBM) serving nearly 38 mill ion members nationally, has hired industry veteran Matt Patella as its new vice president and general manager, national & mid-market accounts.
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