Letter to Mike Reitz, President and CEO of BlueCross BlueShield Louisiana, Re: BlueCross BlueShield of Louisiana’s Refusal to Accept Federal Ryan White HIV/AIDS Program Premium Subsidies for People Living with HIV (Jan 27, 2014)

This letter was sent by the Lambda Legal Defense and Education Fund, Inc. (Lambda Legal) and AIDSLaw of Louisiana to the President and CEO of BlueCross BlueShield of Louisiana (BCBS) to express concern regarding BCBS’s decision to no longer accept federal Ryan White HIV/AIDS Program (RWHAP) third-party premium subsidies for qualified low-income individuals living with HIV. The letter was also attached to a civil rights complaint filed with the Department of Health and Human Services Office for Civil Rights by the aforementioned parties to challenge the BCBS decision.

Under RWHAP, the federal government makes “grants to states, cities, and nonprofit organizations to provide premium subsidies, treatment and medication to people with HIV who have no alternative sources for coverage.” The letter notes that RWHAP funds are a “critical safety net to permit people living with HIV to obtain health coverage for essential, life-saving medical care.” Because BCBS stopped accepting RWHAP premium subsidies, policyholders cannot afford their BCBS premiums and may lose their health insurance. Further, because BCBS refuses to accept RWHAP premium subsidies from new enrollees, eligible low-income Louisianans with HIV are effectively blocked from enrolling in BCBS plans.

The letter expresses concern that BCBS’s decision “perpetuates the legacy of years of insurance industry practices aimed at excluding those with HIV from coverage.” The letter states that there is no legal basis for BCBS’s decision, and that BCBS may be in violation of the non-discrimination provisions of the Affordable Care Act. Lambda Legal and AIDSLaw of Louisiana request that BCBS reverse its policy and resume accepting RWHAP premium subsidies.