Terry Kellogg is the president and CEO of the most dominant health care provider in the state of Alabama.
Blue Cross Blue Shield of Alabama makes up nearly 90 percent of the state’s health insurance marketshare, but it could be facing more competition once the second enrollment period of the Affordable Care Act opens on Nov. 15.
I sat down with Kellogg to get his thoughts on the upcoming second enrollment period of the Affordable Care Act, the current state of Alabama’s health insurance market and what he thinks about Medicaid expansion.
What are your expectations for the continued implementation of the Affordable Care Act and how will it impact the state?
I support almost all of the major provisions of the bill. I like the exchanges. People should be able to compare and contrast the cost of health insurance just like they shop for every other consumer product. I think those are great ideas. Past that, it’s too prescriptive. They should be able to allow the marketplace to innovate. To tell us exactly what to cover, and let everyone look the same, that’s not what consumers want. Americans want lots a choices. As far as implementation on the second open enrollment, it feels like it’s going to be better partly because of public education, but we just don’t know yet. It was pretty much an unmitigated disaster last year. It seems like five kids in a garage in Palo Alto could design that website so it would work. It’s hard to imagine how we spent $190 million to get a website that doesn’t work.
We don’t use our market share as a way to hammer providers for contracts. Our providers are our business partners and we try to treat them like our business partners. We are looking for a sustainable business relationship and no relationship where one party takes advantage of the other is long term sustainable. I think most providers will tell you ‘I wish they paid me more, but they’re good business partners.’ Do we have some of the lowest premiums in the country? Absolutely. Do I think Blue Cross plays a role in that by holding the line and keeping providers committed to efficient and effective care, yeah we have great health care here at a great price. Is our market share partly responsible for that? Yeah, probably. There’s no barriers to competition in the state and they’re welcome to come on down here every day, but we’re really hard to compete with.
Should Medicaid be expanded in Alabama?
I think the governor has stated very clearly, and it would be hard not to agree with him, that we should not expand Medicaid in its current form. I think we need to transform the way that care is delivered. I would also say we are working diligently to make the current legislation as successful as it could possibly be. We’re trying to help the RCOs (regional care organizations) if they see fit to use our services. I think the governor has that right. The system needs to be reformed and this expansion carrot gives him pretty good leverage to create some transformative policy and I think after the election you’ll see him get more aggressive in that space.
Date: September 30, 2014