Around the Horn for August 2-8, 2013
Steve Newton at Delaware Libertarian has begun a must read series about whether Karen Weldin Stewart's favorite company Highmark is trying to build a monopoly for MedExpress in Delaware:
[T]he current incestuous relationship between Highmark Blue Cross Blue Shield and MexExpress urgent care clinics is a classic example of government utterly failing at "regulating" a market. To begin with, let's go back and recall that Senator Patti Blevins and Insurance Commissioner Karin Weldin Stewart teamed up to exempt Highmark from the Attorney General's authority to require the insurance company to set aside $175 million in reserves for a foundation to benefit taxpayers. This was Highmark's condition for entering the Delaware market--$175 million plus multiple other exemptions and exceptions to existing insurance law. If you bother to go look at either Blevins' or Stewart's campaign donation pages at the Delaware Commissioner of Elections page, and you take the 2-3 hours necessary to trace down the bewildering array of PACs and healthcare related donations that each woman received in 2012, you will discover that they were well compensated for screwing Delaware taxpayers out of $175 million. Next, you need to recognize that Highmark holds a $51+ million stake in MedExpress urgent care clinics. To put it as clearly as open sources allow: Highmark holds at least a 10% ownership stake in MedExpress, probably more. So it was no surprise that, as in Pennsylvania, when Highmark came to Delaware, MedExpress quickly followed behind. In the past year, MedExpress has dumped FOUR new clinics into New Castle County, and is (or has) added four more in Kent and Sussex. These new clinics arrived with tens of thousands of dollars worth of smaltzy advertising about "your new neighbor." Here are the harsh realities: the arrival of MedExpress is only the FIRST STEP in a tried and true Highmark business model for vertical integration. Basically, the plan involves four steps...Go to Delaware Libertarian and read on. Great work, Steve. Come inside to check what other Delaware bloggers have been blogging about this past week.





