Health Care for America Now, Citizen Action of New York and MoveOn Protest Poor Customer Service Record of GHI-HIP

Health Care for America Now, Citizen Action of New York and MoveOn Protest Poor Customer Service Record of GHI-HIP

Participating in Nationwide Day of Action Called “Big Insurance: Sick of It”

Release Analysis Showing Company Has One of the State’s Worst Customer Service Records

Albany, NY – As health insurance companies spend $641,000 a day to oppose health care reform, supporters of Health Care for America Now (HCAN) protested today outside the Albany Customer and Support Services Center of GHI-HIP. They were reacting to an analysis prepared by the Public Policy and Education Fund (PPEF), based on state customer service data, showing that the company has one of the worst customer service records of any health insurer in the state.

Group Health Inc. (GHI) and HIP Health Plan of New York (HIP) merged in 2006, creating the largest health insurer based in New York State, with 4 million members in several northeast states. The two companies are now both units of EmblemHealth.

“GHI/HIP is exhibit one as to the need for legislation that cleans up the abuses of the private insurance companies — and that reform must have a public health insurance option,” said Chris Scoville, health care organizer for Citizen Action of New York, which directs HCAN, the nation’s largest health care campaign, in New York State.

“The report we’re releasing today finds that each of the 3 plans operated by the company is at or near the bottom of the complaint rankings in 2008 among the state’s 46 health plans. We can’t continue to trust our health care to private insurance companies like GHI/HIP,” said Bob Cohen, policy director of the Public Policy and Education Fund (PPEF), the report author.

“Unless we pass national health care reform that limits outrageous practices like canceling people’s health insurance just when they get sick and refusing to enroll people who have pre-existing conditions, New York customers are going to continue to be abused by companies like GHI/HIP,” said Scoville.

“We’re also here to protest these two company’s opposition to federal health care reform through their participation in America’s Health Insurance Plans, the major trade group for
health insurers. The big health insurance companies oppose reform because they profit by keeping the system exactly the way it is. They want to maintain a system that lets companies raise premiums at will, fabricate pre-existing conditions, and refusing to cover the treatments our doctors prescribe,” said Cohen.

“Enough is enough,” said Scoville. “We’re here today to tell big insurance we’re sick of it. We need a guarantee of good coverage we can afford, and that includes the choice of a strong national public health insurance option.”

Protesters are asking GHI/HIP and its parent corporation, EmblemHealth to address its bad practices by the end of the year, and stop the outrageous practice of using employees and other company resources to oppose health care reform. David Abernethy, EmblemHealth’s senior vice-president for governmental affairs, is a member of the policy committee of America’s Health Insurance Plans (AHIP), the major trade group for health insurers nationally and an aggressive opponent of reform. AHIP spent $7.54 million on lobbying in 2008 and $2 million for the first quarter of 2009, obviously to head off reform.

The PPEF analysis prepared today used New York State Insurance Department (NYSID) data that ranked health insurers by category based on the number of complaints received that were upheld the NYSID as valid. The rankings also consider the amounts collected in premiums — a recognized measure of company size. The complaints concern such topics as failure to make prompt payment, reimbursement, coverage, benefits, rates and premiums.

The PPEF analysis found that each of the 3 GHI/HIP plans is at or near the bottom of the ranking for its category of insurer and for all insurers for consumer complaints. For example, GHI HMO Select is 13th of the 13 HMOs in the state (i.e. the worst of the 13) in the complaint rankings, and 46th of 46 for all insurers. Similarly, GHI’s indemnity plan ranks 41st of all of 46 insurers in the state. The PPEF analysis is available at http://ppefny.org/reports/20090922-GHIHIP.pdf.

“These companies should be focused on my well-being not how much money I can make them,” said Kristin Barron, one of three women sharing their health care stories at the event.

The Albany event was one of dozens held around the nation today as part of the kick-off of a new campaign by HCAN called “Big Insurance: Sick of It.” The campaign is intended to focus public attention on why a public health insurance option is necessary to give consumers an alternative to coverage by large corporate insurance companies like GHI/HIP. In New York State, events are being held today in Buffalo, New York City, Binghamton, and Long Island in addition to today’s event in Albany.

In Albany this was the first in a series of events that will play out over the coming weeks drawing attention to insurance companies and the impact they are having on people’s lives. This event is being followed by an “open-mike” event where individuals will be able to share their personal stories of how they have been negatively impacted by big insurance.

Health Care for America Now (HCAN) is the nation’s largest health care campaign. Founded July 8, 2008, HCAN fights to win a guarantee of quality, affordable health care for all with the choice of a strong national public health insurance option in 2009.

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