Few attend Blues' annual meeting

• Paul von Ebers

Paul von Ebers

Talk about it

Audio

• Blue Cross Blue Shield of North Dakota CEO Paul von Ebers gives his assessment of Friday's annual meeting, including criticism of the company
• Von Ebers talks about the low turnout at Friday's annual meeting
• State Sen. Tim Mathern gives his impression of the Blue Cross Blue Shield of North Dakota annual meeting Friday
• Mathern talks about the concerns he raised to the Blues' board of directors Friday
• Mathern talks about the prospects for change within BCBSND

More...

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Public uproar over management practices at Blue Cross Blue Shield of North Dakota this past year didn’t translate to a strong turnout at the company’s annual meeting Friday at the Fargo Holiday Inn.

Only 12 policyholders attended the meeting, which capped a tumultuous year in which the state’s dominant private health insurer faced scrutiny for a highly publicized reward trip to the Grand Cayman Islands that led to the firing of CEO Michael Unhjem and a state audit of administrative expenses.

Lynn Paulson of Grafton, N.D., CEO of Choice Financial Group, was elected to a three-year term as a consumer director on the Blues’ board of directors. He was chosen over Bradley Williams, president of Goldmark Property Management in Fargo.

Three incumbent board members – who under the Blues’ corporate bylaws run unopposed – also were re-elected to three-year terms: Dr. Julie Blehm, Laura Carley and board Chairman Dennis Elbert.

Reporters weren’t allowed inside the closed-door meeting. Only those who are fully insured with group or individual health coverage through the company, or are a designated representative of a self-funded plan, could attend.

Paul von Ebers, in his first annual meeting as the Blues’ new CEO, said afterward he was surprised by the light turnout. Three policyholders spoke during the comment portion of the meeting, including a farmer-rancher who drove 200 miles from western North Dakota, he said.

“I just think that people have busy lives, and they have other places that they need to be today,” von Ebers said. “But many people have given us their comments and their concerns, and we take them very seriously.”

State Sen. Tim Mathern, D-Fargo, was among those who commented during the roughly 45-minute meeting, which he said confirmed his belief “that there are things that are wrong.

“When you have a major institution like this with major controversies, and there are more staff than anybody else showing up for the meeting, it means there’s a very controlled environment and a population that doesn’t feel comfortable taking part, and that’s very sad for our state,” Mathern said.

Two Fargo police officers and private security staff stood guard outside the meeting room doors. Blues spokeswoman Denise Kolpack said the company has its own security at its Fargo headquarters, where the annual meeting normally is held, and police were requested because the meeting was held off-site due to the potential for high turnout. Seating was set up for 200 people.

Mathern said he raised three concerns to the board, including his contention that the current voting process limits the pool of applicants. He said some people asked him to run for a board seat, but they were unable to get access to the list of voters.

Von Ebers said others have commented via letters and phone calls about the election process, the key issue being whether there should be candidates on the ballot with incumbent board members.

“And I’ve told several people that I’ve not seen organizations work that way in the past, but I have heard that there are not-for-profit organizations in North Dakota that sometimes do have other candidates, and we’re going to gather information on that and bring that to our board,” he said.

Francis Schwindt of Bismarck, who drove 200 miles to attend his first Blues annual meeting, said he believes policyholders should be able to pick from a slate of candidates, including incumbents.

“I am concerned about the governance of the organization,” he said.

Schwindt said he asked during Friday’s meeting to see consultant reports referenced in a seven-point plan for corporate oversight adopted by the board in June, “so we could at least see what those reports are recommending and how the board is responding to those reports.”

Mathern said policyholders shouldn’t be blamed for not showing up Friday, calling the low attendance “an expression of organizational leadership.”

He said he believes there are signs that company officials are listening and that there will be change. The board adopted its seven-point plan for corporate oversight in June.

“I really think the proof in the pudding is going to be in the change of the organization and next year’s annual meeting and how many people show up,” Mathern said.

Vote totals weren’t released Friday. Kolpack said mailings were sent to 141,268 voting members. Normally, about 8 to 10 percent return proxy votes, and turnout for this year’s election was consistent with that range, she said.

Readers can reach Forum reporter Mike Nowatzki at (701) 241-5528

Tags: health insurance, blue cross blue shield, north dakota, bcbs, news, blues, health