Friday, October 25, 2013

Chaney says Governor's order is illegal. Files motion to intervene.

 Insurance Commissioner Mike Chaney accused Governor Phil Bryant of "illegally" usurping his power in a motion to intervene and  joinder he filed yesterday in the legal fight between Governor Phil Bryant and Blue Cross in federal court.  A hearing is scheduled for this morning. Governor Bryant ordered Blue Cross to reinstate ten HMA hospitals to network status earlier this week.  The same executive order also directed the Commissioner to conduct a hearing and review of the dispute.  Blue Cross asked Judge Henry Wingate to issue a temporary restraining order against the executive order. 

The Commissioner  charged:

The executive order illegally usurps the powers of the Commissioner of Insurance and the Mississippi State Department of Insurance into the Office of the Governor.  Such an arrogation of power is unprecedented in the history of the state of Mississippi.

Mr. Chaney argues the Legislature charged the departmeent with the "execution of all laws relative to insurance." He stated "there is no statute which specifically provides otherwise.  He also states "There is a statute, Mississippi Code Section 7-5-1, which prescribes the powers and duties of the Governor and nowhere in that statute is the Governor empowered to direct the Commissioner of Insurance to undertake any act or conduct any hearing.   Mr. Chaney gets more pointed in his motion for joinder:

The Commissioner of Insurance and Department of Insurance do not exist at the whim and caprice of the Governor. Executive Order 1327 in its rawest form purports to grant the Governor the authority to run the Department of Insurance. Thus the Governor directs:

  1. That the Department of Insurance shall undertake a series of hearings
  2. That "the Department shall submit a report in writing", presumably to the Governor, after those hearings. 
  3. That "the Department shall complete all no later than sixty days from the date of this executive order. 
  4. This paragraph does not provide directions to the Department of Insurance or its Commissioner.  It mandates that two private parties enter into a contractual relationship on terms which the Governor sets forth.  
However, Mr. Chaney did fire on parting shot at the Governor in his final paragraphs:

It is the Commissioner's duty to resist the illegal usurpation of those duties by any other person or party, including the Governor of the State of Mississippi.  No man, whatever his office, should be above the law."


Attorney John Corlew represents the Commissioner. Governor Bryant filed a response to the motion for a temporary restraining order as well.  Governor Bryant argues the eleventh amendment prevents the court from reviewing "claims based on alleged violations of state law."  Translation: This is a state fight and it does not need to be in the federal sandbox.  He also argues the harm to Mississippians access to health care far outweighs Blue Cross's interests.  He states Blue Cross continued in-network coverage for over six months for these hospitals and reinstated four of them recently.  He states the injunction will indeed harm the public.  The Governor also argued Blue Cross "has not identified a constitutionally-protected liberty or property interest of which it has been deprived."  This is getting interesting. Stay tuned.

Kingfish note: Corlew v. the Governor's attorneys.  This might get ugly.  Not even a fair fight if one is to be honest. 





29 comments:

Anonymous said...

Way to go Fish Man. Thanks for putting your scuba gear on and diving deep on these issues.

Anonymous said...

Corlew v. Gov attorneys not a fair fight?

I assume you mean Butler Snow v. Corlew with Corlew being David.

You sir do not know John Corlew.

Anonymous said...

The Gov's order lists so many alleged grounds, it's hard to say they all fall under Chaney's scope.

Note also that Chaney told the Gov, in a letter KF posted, that he *welcomed* the Gov's order, so long as it wasn't based on one particular statute.

Anyway, glad to see our tax $$ used wisely.

Anonymous said...

Who is paying John Corlew? The state? Why is Chaney spending money on this? Our Gov and Atty Gen are being represented by Atty Gen office. Seems like a ware of money to me and a way for one of Chaneys boys to get paid on the state dime.

Anonymous said...

@ 8:36 I think the Guv is well represented by Assistant AG Harold Pizzetta. Pizzetta grew up in MS, did his undergrad at American University, and has his JD from Georgetown. Before returning to MS to work at the AG's office, he was with Wilmer, Cutler & Pickering’s Washington D.C. office.

Anonymous said...

Mike Chaney is one of the finest men in state government. He tried to do what was in the best interest of the citizens of the State of Mississippi in establishing a health care exchange that was to be run by Mississippians - not by the federal government. But no - Cowboy Phil would have not of that - you have to remember that Phil was just a deputy sheriff that worked for J D McAdory (a good friend of mine). He was beaten for county supervisor in Rankin county and got elected to the Mississippi House, then appointed State Auditor by Kirk Fordice (a mistake!). Mike Chaney is a honorable man - trying to to what is in the best interest for the citizens of Mississippi. I know Mike and he is a good man - he has helped people that have been hurt by other state officials. He is a Christian and trying to look out for Mississippi. Not Cowboy Phil who's looking out for his contributors who hire his daughter - do you think they would hire someone straight out of college with a grade point like that - I think not!

Anonymous said...

I heard Haley on Gallo yesterday and I think the Maker's Mark has finally made it to his brain!

Anonymous said...

Phil can't even control his staff - now even in Oxford. How do you expect him to handle the Insurance Department.

Anonymous said...

I suspect the unfairness is balanced in favor of John Corlew, as the Governor's attorneys are, presumably, the same intellectuals who advised him he had the power to do this in the first place.

Anonymous said...

It seems like a power struggle between Chaney and Feel. Chaney pissed away over eleven ($11m) million dollars on the exchange fiasco. IMO chaney is 2 slices short of a full loaf. It looks like Feel was trying to shift liability by inviting chaney into the BCBS fiasco. Why didn't HMA sue or countersue? HMA has a sale pending to a Tennessee firm.

Anonymous said...

The governor is not a very bright guy and I think his position here is both wrong and stupid.

These are two private companies involved in a fight. The governor has no business meddling in this. But Phil does feel he was chosen by God to fight Satan so I am not surprised.

Everyone who is involved in this fight (BCBS, HMA and the company buying their profits, Gov. Bryant) will be burned in this mess.

Anonymous said...

Didn't AG Hood already weigh in on the side of the governor?

At least Bryant is arguing he is looking out for the health of the public. Chaney does no seem interested in that, only in protecting his own admitted impotency in this situation.

Anonymous said...

I think Kingfish meant just the opposite

Anonymous said...

Has anyone determined who the $11 million was paid to and whether there have been campaign contributions to Chaney from those individuals or companies?

Anonymous said...

10:05 - what did Haley say?

Anonymous said...

The former Governor should have said "this is a turf battle with Governor Bryant supporting the hospitals and the Commissioner supporting the insured public".

I've heard that the Governors wife is employed by St. Dom.

Anonymous said...

@3:05- the only accurate observation is that our Gov is representing the people who bought health insurance from BCBS to ensure that they continue to receive what they've been paying for!!! Mike Cheney is just pissed off because the Gov did what he refused to do... order the insurance company comply with regulations. That's Cheney's JOB! He needs to explain why he can't -or won't- do it.

Anonymous said...

The social role of hospital insurance is to arm-wrestle the providers which is a very important role. They are the sole agency with a realistic view of medical costs in regional markets. Now if the government kicks this important leg out from under the health finance system...the government will take on that role itself.

Anonymous said...

I'm a little surprised by JJ readers...it seems as you all missed a pretty big turning point in our society:

The Governor just usurped all power the people gave him.

Can he really issue an edict making private parties contract?

Can he order JJ to take money from Donna Ladd for ads?

Apparently so...

Anonymous said...

7:20 is right. The Governor needs to calm down and with consultation with the various state departments including insurance---decide on the state's long term health goals. It looks like he is avoiding the proper executive role and siding with private interests.

Commissioner Chaney has to lure underwriters and the Governor has to know where the state's health achievements need to occur. He got mixing up with industry purposes instead of focusing on targeted health needs.

Anonymous said...

5:16 pm that is not the sole role of a health insurance company EVEN if you naively believe that keeping down costs to the consumer rather than maximizing their profits is their sole motivation.

They are SUPPOSE to take your premiums while you are healthy and invest them wisely so that there is more than enough money should you become ill.For centuries, insurance of all kinds worked just fine when they didn't squander your premiums on inflated salaries and high risk investments or high risk coverage. Even when risk was spread, the math should have been more than sufficient.

The public has been snookered. The insurance companies complain, for example, about financial damage from a catastrophic event in quarterly or yearly terms. They do not point out that for decades they received and got to invest the premiums of those covered without paying out a dime. They cap and deny coverage without providing the amount of cash a person would have available if their premiums had been wisely invested.

Insurance is suppose to be like forced savings and a way to pay back with interest if you exceed your savings in a given year.

I'm 66 and I should have built up with my premiums more than $2 and 1/2 million in a minimum interst account. That should not only cover any costs I have but cover costs of other policy holders.

They complain about the stock market without mentioning that they shouldn't have been highly invested in the market to start.

They fail to mention that the health insurance industry supported Medicare because before the taxpayers ponied up THEY covered the insured elderly instead of the government. And, miracle of miracles, they still made a profit!

But, out of my premiums and yours, a near monoply has paid for ads, contributed to politicians, made foolish investments, paid it's executives ridiculous salaries and perks, had wonderful " conventions/meetings" in luxurious places, built lovely buildings ,and hired more people than needed including lawyers to keep them from paying out.

They haven't attacked the real costs in health care, the excesses of the pharmaceutical industry or the unnecessary middle men. Instead, they want to limit your access to health care.

They have duped the public like most of our broken institutions because we can't recognize the difference between a business and a con game anymore. We've allowed what used to be illegal to be legalized. We've destroyed real oversight.




Bystander said...

Can you say Guvnah Chaney?

Anonymous said...

How much money has HMA given in campaign contributions to Bryant and Tate Reeves? Maybe the true reason for this action by the governor is just about money?

Anonymous said...

HMA,it's lobbyists and law firm have given almost $500,000 to Bryant. Blue Cross does not make political contributions.

Anonymous said...

About money 1:43 and playing to Rankin County Republican voters.

Anonymous said...

KF, Harold Pizzetta is an outstanding attorney. I know that because I've had a complex case against him that I should have won but didn't because he outmaneuvered me, something that doesn't often happen; it's usually the other way around.

If any lawyer can win the loser case he has for the Governor, it's him. John Corlew is a fine attorney, too. So is David Kaufman. All parties are well represented.

Ophelia said...

Mike Chaney is the real deal. True statesman potential there, and just the sort to bridge the "gulf impassable" between the rabid left and the crazy right. He'd get my vote! And his wife Mary would make the loveliest first lady since Elise Winter and Pat Fordice. He is a man who, over my long acquaintance with him, has never failed to consult his Christian conscience (and his brain, which is equally important) before consulting his party line. Mike Chaney, you rock!

Anonymous said...

I don't believe Ophelia that anybody here has ever questioned Chaney's RINO credentials. His support for big government, big bureaucracy and higher taxes was never in doubt.

Anonymous said...

12:40
you left out his love for Taters



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