How Nebraska's Insurance Companies Stand To Profit From Nelson's Compromises

LINCOLN, Neb. — Nebraska – never seen as a key player with special needs in the health care debate – stands to reap millions of dollars worth of financial goodies should the Senate version of the health care bill get final approval.

Not only did Sen. Ben Nelson help cut a deal that covers the state's Medicare expansion cost of $100 million over 10 years – all other states will have to help bear their own costs – insurance companies in Nebraska will get tax and fee breaks.

Insurance giant Blue Cross/Blue Shield of Nebraska, for instance, would pay between $15 million and $20 million less in fees under the Senate bill than it would have without a change the Nebraska Democrat helped broker, according to Nelson's office. Another insurer, Mutual of Omaha, won't have to pay taxes on so-called Medigap insurance that buttresses Medicare insurance used by the elderly.

Unlike the Blue Cross/Blue Shield deal, that tax break will be extended to other companies. Mutual of Omaha spokesman Jim Nolan said he didn't "have a figure to share" about how much the company may save.

A Blue Cross/Blue Shield of Nebraska spokesman estimated that the cost-savings figure released by Nelson's office was probably close to accurate and added that the company didn't ask for the break.

The savings will go directly to consumers, said Pat Bourne, the company's vice president of commercial business and government affairs.

Republicans blasted the perks for Nebraska, saying they were a sign the health care bill couldn't stand on its own merits.

"There should be no special deals, no carve-outs for anyone in this health care bill; not for states, not for insurance companies, not for individual senators," U.S. Sen. Mike Johanns, R-Neb., said.

Nebraska Democrats, meanwhile, defended Nelson, saying he did his job by protecting the state's interests.

"Ben Nelson has done his job and if anyone has a problem with him, maybe they should take a lesson from him on how to protect ... your state," state Sen. Danielle Conrad said during a rally Monday to support her fellow Democrat.

Should the Senate version get final approval, public perception of the plan over the next few could determine the political fate of Nelson, who constantly walks a political tightrope in his conservative, Republican-leaning home state. Nelson is up for re-election in 2012.
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