BCA announces new governance structure, companies return
The Business Council of Alabama (BCA) on Wednesday announced a new plan to strengthen and improve the association’s governance structure. Several major corporations including Alabama Power, Blue Cross and Blue Shield of Alabama, and Regions Bank left the organization this summer siting problems with BCA’s leader Billy Canary. The BCA has stated in June that they would be replacing Canary. “The wholesale governance and leadership changes made today show what is possible when businesses come together with a common goal,” said CEO of Alabama Power Company, Mark Crosswhite in a press release. “While the hard work of moving this organization forward remains, I am pleased with this progress and look forward to working with businesses across our state for a stronger BCA and a better Alabama.” The BCA’s new structure consists of an executive committee made up of 11 individuals. According to the BCA, five committee members represent larger businesses, five represent smaller businesses, and one trustee represents the Alabama Self-Insured Worker’s Compensation Fund. The new executive committee elected today includes: Rey Almodovar, CEO, Intuitive Research and Technology Mark Crosswhite, CEO, Alabama Power Co. Perry Hand, Chairman, Volkert Inc. Denson Henry, Owner/Vice President, Henry Brick Co. Carl Jamison, Shareholder, JamisonMoneyFarmer PC Johnny Johns, Executive Chairman, Protective Life Corp. John Mazyck, Principal, The Frazer Lanier Co. Gary Smith, CEO, PowerSouth Energy Cooperative John Turner, CEO, Regions Bank Bobby Vaughan, Chairman of the Board, Alabama Self-Insured Worker’s Compensation Fund Tim Vines, CEO, Blue Cross and Blue Shield of Alabama “We are fortunate in Alabama to have a business community that understands the importance of providing strong leadership on matters that affect our state’s economic success,” Heather Brothers New, chairwoman of the Chamber of Commerce Association of Alabama said in a press release. “Individuals, families and communities can’t thrive if our state doesn’t provide an environment where businesses can thrive. Everyone in Alabama benefits from this effort to ensure a unified and effective BCA.”
Randy Davis indicted on bribery, conspiracy charges
Outgoing Daphne-Republican State Rep. Randy Davis was indicted by a feral grand jury on Wednesday on charges of bribery and conspiracy. According to federal court documents, Davis has been accused of pressuring Blue Cross and Blue Shield of Alabama to “cover infusion treatments at Trina Health clinics even though the Centers for Medicare and Medicaid Services said there was no evidence the outpatient insulin therapy treatment improved outcomes,” the Associated Press reported. Allegedly, Davis worked with former Alabama House Majority Leader and Decatur-Republican Micky Hammon to recruit investors to the Trina Health clinics, after which he would receive a finders’ fee. He has also been accused of working with Hammon to push a bill through the Alabama State Legislature’s 2016 session aimed at forcing insurance coverage of the treatments at the clinics. “After Trina Health encountered difficulties with the health insurance companies, Davis attempted to lobby the insurance company to change its position,” reads a Department of Justice press release. “When that failed, Davis took steps to advance the bill. For example, Davis helped to recruit a sponsor, arranged for the public hearing to be video recorded, and then spoke in favor of the bill at a public hearing.” Vestavia Hills-Republican, longtime State Rep. Jack Williams, former Alabama Republican Party Chairman Martin Connors, along with a California-based health care executive G. Ford Gilbert were arrested in April for the alleged plan. “Based on these events, the superseding indictment charges Davis, Gilbert, and Connors with conspiracy to commit bribery related to federal programs. Additionally, the superseding indictment alleges that Gilbert committed various acts of bribery related to federal programs. Gilbert and Davis are also charged with interstate travel and communications in aid of racketeering. The last count in the superseding indictment charges Connors with making a false statement to a federal agent,” the press release continues. The defendants face a maximum of 10 years imprisonment. Hammon was sentenced to three months in prison in February on charges relating to mail fraud while Williams, Connors and Gilbert await their trial on September 4.
Blue Cross and Blue Shield of Alabama joins growing list of BCA exits
Alabama’s largest health insurer on Wednesday, announced they are joining the growing list of major companies pulling out of the Business Council of Alabama (BCA) due to dissatisfaction with BCA’s leadership under President and CEO Billy Canary. Blue Cross and Blue Shield of Alabama (BCBSAL) joins Alabama Power, Regions Bank and PowerSouth Energy Cooperative in leaving the council, which gets its primary funding from membership dues. “Blue Cross has consistently participated at a high level of support of the BCA and its activities. At this time, the correct path for our company and our customers is to withdraw from the BCA while the organization considers its future path,” BCBSAL said in a statement. According to BCA Board Chairman Perry Hand, these major companies had requested the BCA remove its Canary, by May 1 or June 1, a deadline they were unable to meet. Instead, the BCA is working to have new leadership by January 1.
BCBS of Alabama launching new opioid management strategy
In an effort to combat the growing opioid abuse epidemic in Alabama and as a measure of concern for their customers’ care and safety Blue Cross and Blue Shield of Alabama is launching a new opioid management strategy. In 2015, 5.8 million prescriptions for opioid medications were given to Alabamians, making it the highest prescribing state in the nation for prescription opioid drugs. According to Blue Cross and Blue Shield Association’s Health of America report on the opioid epidemic: 26 percent of Blue Cross and Blue Shield of Alabama’s commercially insured members filled at least one opioid prescription in 2015, compared to 21 percent nationally 6.5 percent of our members were on a long-duration opioid regimen in 2015, compared to 3.8 percent nationally 16.4 per 1,000 members were diagnosed with opioid use disorder in Alabama in 2016, double that of 8.3 nationally 29 percent of our members with opioid use disorder received medication-assisted therapy in 2016, compared to 37 percent nationally In recent years, Alabama has seen many deaths due to prescription drug overdoses. The use of opioid pain relievers lead to 723 drug-related deaths in 2014, and 5,128 deaths from 2006 through 2014. Therefore, Blue Cross and Blue Shield of Alabama feels that it is necessary to implement the following requirements: Extended-release opioids will require a prior authorization for all initial fills of long-acting opioid medications. Members currently receiving these drugs will not be impacted. Immediate-release opioids will not require prior authorization but will have quantity limits. The first prescription fill will be limited to a seven-day initial supply. After an initial seven day supply is filled, additional prescriptions may be obtained without pre-authorization. Members currently receiving these drugs will not be impacted. Naloxone, the antidote for an opioid overdose, will be available to Blue Cross members for a generic copay. These include the forms of prefilled syringes and nasal spray. Evzio, the branded auto-injector, will no longer be covered due to egregious pricing. The conditions will go into effect Feb. 1, 2018.
Obamacare primary cause for Blue Cross of Alabama’s predicted $135 million 2015 loss
Blue Cross and Blue Shield of Alabama is expecting to lose more than $135 million in 2015, thanks in large part to Obamacare. According to a statement obtained by AL.com from BCBS-AL spokeswoman Koko Mackin, “Beginning in 2014, the ACA eliminated health underwriting and waiting periods for pre-existing conditions allowing individuals to buy healthcare coverage regardless of their health condition. Company data indicates that many of our new individual ACA customers have used an extensive amount of medical services, which is causing total claims paid and their related operating expenses to exceed premiums.” Year-end final figures for 2015 will not be announced until the beginning of March. But the insurance company has already tallied losses through the end of October, totaling $109 million. Because of its enormous losses, BCBS-AL raised statewide rates by an average of 28 percent for the 2016 Obamacare policies now being sold. According to the statement, they have also eliminated platinum and some gold-level plans, as well as slightly shrunk its workforce. It remains to be seen how effective these measures will be in side-stepping future losses. About 11 million Americans, including nearly 200,000 from Alabama, get health insurance through the exchanges created by the Affordable Care Act.
