« Helping Red Cross help fire victims |
Today
| Update: Gridlock and hours-long slogs grip the state »
December 13, 2007
Blue Cross to pay $20 million to resolve probe
Blue Cross & Blue Shield of Rhode Island has reached an agreement with the U.S. Attorney's Office to pay $20 million to resolve a federal investigation.
The money will be put into a trust fund administered by the Rhode Island Foundation and used to improve the quality and affordability of health care in the state.
Under the agreement, the state's dominant health insurer has also consented to make ethical reforms.
The agreement announced this morning comes just two days after four top executives at Blue Cross were dismissed.
Blue Cross has been under investigation in a widespread probe into influence peddling at the State House; the company will not face criminal charges if it complies with the terms of the agreement.
“We understand the position that Blue Cross is in in the state,” said U.S. Attorney Robert Corrente. “They hold a predominant market share in insurance. They insure a lot of Rhode Islanders. That was one of the things we looked at when we arrived at the agreement.”
As part of the agreement, Blue Cross cannot seek rate increases to cover the $20 million payment.
Extra: Read the full agreement.
-- With reports from Journal staff writer Brandie Jefferson
Two former state legislators have been convicted for their roles in the federal corruption investigation that has come to be known as Operation Dollar Bill. Blue Cross acknowledged the former lawmakers actions in the agreement.
Former House Majority Leader Gerard M. Martineau, of Woonsocket, pleaded guilty to accepting $900,000 worth of paper and plastic bag contracts from CVS and Blue Cross in exchange for influencing legislation.
Former Senator John A. Celona, a North Providence Democrat who had served as chairman of the powerful Senate Corporations Committee, two years ago admitted selling his office to Roger Williams Medical Center, the drugstore chain CVS and Blue Cross and Blue Shield of Rhode Island. He gained $319,000.
The company also acknowledges in the agreement that it paid $400,000 in insurance brokerage commissions to former Rhode Island Senate President while also lobbying him for legislation.
The state ethics panel has accused former Senate President William V. Irons of breaking state ethics laws by voting on pharmacy legislation while he had a conflict of interest.
The company confirmed yesterday that two senior vice presidents, Lynne A. Urbani and Matthew T. Brannigan, and two longtime State House lobbyists, Scott A. Fraser and Brian Jordan, had “departed” the insurance company on Tuesday. Urbani and Brannigan had been promoted earlier this year.
Posted by Jack Perry
at 2:30 PM | Permalink
Bob | December 13, 2007 12:35 PM link
d. walsh | December 13, 2007 1:36 PM link
Paul | December 13, 2007 1:39 PM link
Susan E. Geary | December 13, 2007 1:57 PM link
Robin B | December 13, 2007 3:35 PM link
Elaine | December 13, 2007 3:38 PM link
Mikeal | December 13, 2007 3:56 PM link
Peter | December 13, 2007 5:00 PM link
BAB | December 13, 2007 5:18 PM link
Fran | December 13, 2007 7:04 PM link
Post a comment
Please be civil. Vicious comments, personal attacks and profanity won't be published. Name and email are required; email address will not publish.
Yup, just like I said. The investigation has now been politicised.
The $20 million goes where? Back to ratepayers? Ha! Doubtful. Probably headed to some out of state slush fund like the DuPont lead paint settlement.
Ratepayers will simple return the $20 million to BCBS in the form of higher rates. I'm sure its already been secretly agreed on. So we punish ourselves.
Justice will be harshly doled out to those without the means to rob $20 million from their customers to pay fines.
The four that were let go will be prosecuted most likely (thats no certainty however) but the question is how many won't be due to the $20 million payment?
I can't wait to see how CVS squirms out of this.