The Blues have decided to get smart. Perhaps not smart, but at least smarter. Blue Cross of California’s much-publicized PR disaster arose when the LATimes published an article decrying the plan’s policy of trying creative ways to cancel policies for individuals who had the nerve to ask BX to pay for their medical problems.
Actually, the problem arose when the State of CA took legal action against BX.
Hank Stern and Bob Vineyard at InsureBlog have commented on the Blue’s policies and the fallout from the publicity surrounding same, with Hank taking me to task for my negative take.
I remain convinced that it was stupid and short-sighted, despite Hank’s demurral.
Health insurance companies could have incredibly powerful brands. Nothing resonates more strongly with people than health. If anything, this becomes even more powerful as the population ages. Health plans somehow have never figured out that a brand image is an incredibly valuable asset, one that would enable them to grow market share, drive premium profits, and compete on some basis other than how thick their provider directory is and how cheap their premiums are.
But they don’t.
Carriers making stupid PR moves? Say it ain’t so!!
Does anybody remember the story of the guy who made the evening news for trying to cancel his AOL account and tape recorded the ear lashing (bad customer service) that he got from the AOL rep? I think that happened about 6 months ago… At the time, it was documented as “one for the little guy” ! Apparently, I might be the only one who remembered that story. Perhaps it wasn’t that important.
Well blow me down. Has BC of Ca lost it’s sense? Did it somehow confuse not only it’s size but the size of it’s actions. Who does BC of Ca think it is – AOL? Doesn’t somebody there understand what stories like this are capable of?
As insurers get bigger and bigger the more of a footprint they leave when they goof up like this. I bet more people will remember this story – even if it doesn’t make the evening news… and when the time comes – perhaps sooner then we all realize, perhaps those fine folks at BC of Ca will suddenly see what the ramifications of their actions are on the industry of insuring people…