Schwarzenegger Appointee Confirmed, But Not Before Committee Rakes Him Over the Coals on Letting Health Insurers, Including Blue Cross, Set Their Own Standards

Department of Managed Health Care Seen as Fox Guarding the Chicken Coop

By Anthony Wright
Executive Director of Health Access California

Dale Bonner was confirmed this last week by the Senate Rules Committee as the Secretary of Business, Transportation and Housing, cabinet position within the Schwarzenegger Administration.

But not before several Senators asked a series of tough questions about his oversight over the Department of Managed Health Care. This was part of a wide-ranging hearing that reflected the broad scope of the department, from housing to transportation issues as well.

Senator Padilla asked about the level of fines levied at Blue Cross and other insurers over rescissions, and said he's "not convinced [they] get to the level of deterrence needed" and that he's thinks that "all of the players have not gotten the message." After being asked about how the Department is made aware of consumer complaints, Bonner stated "I don't think [the Department] is sufficiently pro-active."

Senator Padilla also asked about the letter by Senate Health Committee Chair Kuehl expressing concern that the timely access regulations adopted are not reflecting the will of the legislature. He asked about the Department's adoption of new regulation that allow the health plans to set their own standards and said: "That sounds a little permissive to me." He made the argument for such clear, enforceable standards. "We know that justice delayed is justice denied. Well, health care delayed is health care denied” and he pointed out the additional costs and burdens that such delays place on emergency rooms.

Padilla also asked about the implementation of language access regulations. Bonner stated that he thought the implementation of language access is "all over the map," and that "I don't believe we have enough coherency" with regard to the goal of language access.

Senator Ashburn asked about the appropriateness of Blue Cross' letter to get doctors to reveal information to the insurer that would get patients retroactively denied. Bonner stated that he didn't read the infamous letter himself, but that he recognized "the discomfort in anything that interferes in the doctor-patient relationship," and he thought Blue Cross' retraction of the letter "confirms that there was a serious problem." asked more specifically about the actions that Bonner took with regard to the issue, including any conversations with DMHC Director Cindy Ehnes. He said he hadn't spoken with her directly, but did through staff, and was satisfied that there was a investigation underway. Later, Senator Perata followed up Ashburn's scolding, saying "you should have seen the letter, and you should have been all over it."

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