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HEALTH CARE PLAYERS

Tuesday, August 18, 2009 8:30 AM

Blue Cross Blue Shield Association
This federation represents the interests of the 39 "independent, community-based and locally operated" Blue Cross Blue Shield insurance companies, which collectively cover more than 100 million Americans.

What They Want
The Blue Cross Blue Shield Association's basic requirements for health reform are in line with most everyone talking reform. The group wants to "expand coverage to everyone and rein in costs while improving quality," Senior Vice President for Policy and Representation Alissa Fox said.

hc_lobbyists_sig.jpg

To expand coverage, BCBSA wants to get rid of the current blockages such as ratings based on age or gender and denials based on pre-existing coverage. As a representative for insurance companies, BCBSA's support of those reforms is significant, but the group says its push for those changes is nothing new.

"We've been supporting insurance reforms for years. Blue Cross Blue Shield plans had the exact same position in 1993 and 1994," Fox said. "No other industry is coming to the table offering reforms of their own industry in such a significant way."

To control costs while improving outcomes, the group supports comparative effectiveness research and more preventative care, according to the group's reform plan, "The Pathway to Covering America."

"We agree with the vast majority of what's in the bills that we've seen," Fox said.

Deal Breakers
But the BCBSA will not support one provision -- a government-sponsored public insurance option.

"We believe the public option is totally unnecessary to achieve the goals of reform and would unravel the current employer-based system," Fox said.

And the BCBSA is not alone in that belief. Republicans and some moderate Democrats in Congress have pushed for the public option to be dropped from legislation, though it is currently included in bills from both the House and the Senate Health, Education, Labor and Pensions Committee.

"Our goal is to work to get the public option dropped from the final bill because we would very much like to see a bill enacted this year," Fox said.

How Much They've Spent
During the first six months of 2009, the BCBSA spent about $4.6 million on lobbying activities, according to lobbying disclosure forms. In the same time period in 2008, the association spent about $4.1 million on lobbying.

The Blue Cross Blue Shield Association PAC and individuals associated with the group have contributed $524,606 to federal candidates and committees so far during the 2010 election cycle. In the 2008 cycle, the PAC and individuals associated with the group donated $2.6 million, according to the Center for Responsive Politics. In the 2008 election cycle, the group's donations were almost split evenly between the parties, but for the 2010 election cycle, 58 percent of the donations have gone to Democrats and 42 percent to Republicans, according to the Center.

This year, donations have gone to Blue Dog PAC, National Republican Congressional and Senatorial Committees, the Democratic Senatorial Campaign Committee, Senate HELP Committee stand-in chairman Chris Dodd, D-Conn., House Majority Leader Steny Hoyer, D-Md., and House Energy and Commerce Chairman Henry Waxman, D-Calif.

Through its membership in the Health Economy Now coalition, the BCBSA has helped run a multi-million dollar television ad buy supporting reform.

The group reported $370.8 million in total revenue for 2007, according to its Form 990 filed with the IRS.

Key Players
Scott Serota, the association's CEO, has been involved with talks at the White House about reform, including Obama's March health care summit. Serota took the helm of the organization in 2000 and had worked there since 1993 as an executive and COO. Previously, he was president and CEO of Rush Prudential Health Plans and founder of Physicians Preferred Health Inc.

Serota has worked with organizations including the National Business Group on Health's Institute on Healthcare Costs and Solutions, the Council for Affordable Quality Healthcare and the National Center for Healthcare Leadership, and during the Bush administration he was appointed to the Policy Committee of the White House Conference on Aging.

In addition to White House meetings, Serota has testified before the Senate Finance Committee on health care reform.

Fox is BCBSA's senior vice president for policy and representation and was a part of discussions held by Senate HELP Committee Chairman Ted Kennedy, D-Mass., and Senate Finance Committee Chairman Max Baucus, D-Mont. She has also testified about health care reform before the House Energy and Commerce Committee and the House Small Business Committee.

"We've been working with Democrats, Republicans -- both sides of the aisle -- the White House and other stakeholders because we're very committed to enacting health care reform this year," said Fox, who worked as an assistant secretary for management and budget at the Department of Health and Human Services for 11 years before joining the BCBSA.

Serota was a registered lobbyist until 2007. Fox is still registered as a lobbyist.

Links
BCBSA's Health Care Reform Page
BCBSA's Pathway to Covering America
Serota Senate Finance Committee Testimony
Fox House Energy and Commerce Committee Testimony
Fox House Small Business Committee Testimony

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