ATTACHMENT #43
August 23, 2019
Post Office Box 1673
Kearney, Nebraska 68847
The Honorable Laura Kelly
Governor of Kansas
300 Southwest 10th Avenue, #241S
Topeka, Kansas 66612
Dear Governor Kelly:
SUBJECT: Insurance Fraud by Blue Cross/Blue Shield
I would like to direct your attention back to a Blue Cross/Blue Shield healthcare insurance concern I had initially shared with you on February 4, 2019 (Attachment 12). Specifically, this is in regards to claims of healthcare insurance fraud being committed by Blue Cross/Blue Shield (BCBS) through their third-party payor, New Directions Behavioral Health (NDBH). Like me, I am sure you would never want to see Kansans victimized, especially when they are ill. It is unfortunate that Insurance Commissioner Vicki Schmidt does not share that concern.
When I initially requested an investigation into the allegations of insurance fraud in 2018, Mr. Ken Selzer was serving as the State of Kansas Insurance Commissioner. He seemed to have no interest in my claim despite this being an integral part of his position. I attempted to follow-up with you, Ms. Kelly, on three occasions: February 4, 2019 (Attachment 17); March 1, 2019 (Attachment 20); and January 14, 2019 (Attachment 12). I never received a response from your office and stopped trying to communicate with you until now.
Our Insurance Commissioner serves as the liaison between the insurance policyholders and insurance companies. It is the Commissioner’s responsibility, as much as possible, to ensure the best interests of both are being served. To maintain the objectivity needed to be successful, the State of Kansas passed Statute 40-109 (Attachment 27). This Statute prohibits the Kansas State Commissioner to “be in the employment of any insurance company or have any official connection with any insurance company, or any financial interest in any insurance company other than as a policyholder.” Among other things, it bans any campaigning Kansas Insurance Commissioner from accepting donations from an insurance company. This prevents our State of Kansas Insurance Commissioner from being placed in a situation that might be considered a “conflict of interest.”
But, as listed on Attachment 30, we can see there has been a long-standing practice of Kansas Insurance Commissioners overlooking the restrictions of Statute 40109. Apparently, the possible consequences of violating Statute 40109 have not been serious enough to gain the respect of our Insurance Commissioners. Regardless, it is a crime to discount the mandates of Statute 40109. The State of Kansas has appointed criminals to run the State Insurance Department for years. This has led to the needless, and unforgivable, suffering of thousands of BCBS policyholders in the State of Kansas. If our Insurance Commissioner considers the post of Insurance Commissioner to be a steppingstone to political advancement, that person will not do anything to offend any insurance company. In 2018, when I asked Insurance Commissioner Ken Selzer to look into my Complaint of insurance fraud being committed by BCBS, he refused. During the next election cycle, Mr. Selzer ran for the position of State of Kansas Governor. Some of the insurance companies who donated to his campaign are noted on Attachment #41.
And, this is the crux of the problem, isn’t it?
Our current Insurance Commissioner, Ms. Vicki Schmidt, has also accepted campaign donations from insurance companies (Attachment 30). During your campaign for State of Kansas Governor, you received a donation from BCBS which might explain your apparent reticence to investigate BCBS. Your Lieutenant Governor, Mr. Lynn Rogers, had no need to campaign for his current position. But, in 2016, when he successfully campaigned for the post of State Senator, he accepted at least one donation from an insurance company. It is only our State’s Insurance Commissioner who is prohibited from accepting campaign donations from insurance companies. No one who receives campaign donations from the insurance industry can be expected to jeopardize that source of financial backing. That’s why our Insurance Commissioner is prohibited from accepting campaign money from any insurance company. Kansas hasn’t had an honest Insurance Commissioner since Kathleen Sebelius. The result of that dishonesty has been the suffering of Kansans.
It is a sad statement of affairs that only one of our State’s elected officials responded to my Complaint, and that is Attorney General Derek Schmidt. He took the time out of his very busy schedule to answer my questions despite the fact there was nothing he could do to assist me. Only one other elected official extended the courtesy of writing a note in recognition of my concern for BCBS policyholders, and that was the President of the United States (Attachment 23). Within the note that came from The Office of Presidential Correspondence, it read:
“After carefully reviewing your correspondence, we have determined that your concerns involve State or local matters. Please contact government officials in our State who can best address your situation.”
Because our Kansas State Insurance Commissioners have been remiss, the Federal Bureau of Investigation (FBI) had to become involved. How humiliating. The FBI are responsible for the protection of our Country. Now, due to Mr. Ken Selzer’s and Ms. Vicki Schmidt’s professional negligence, the FBI has to do their job. No one has any idea about the number of BCBS policyholders who have been swindled by paying for benefits that were not authorized for use when they should have been. If BCBS has done this to policyholders in the State of Kansas, how many other States have been victimized? We don’t know, because our Insurance Commissioners have not done their job.
I believe the governmental post of State Insurance Commissioner needs to remain one that the people of Kansas vote on. The decisions of the Insurance Commissioner are ones that may affect every citizen living in our State. I also believe that in order to make a wise decision at the voting booth, citizens need educated on what an Insurance Commissioner does. Right now, my guess is that very few outside the insurance industry know exactly what an Insurance Commissioner does. Being unfamiliar of what the responsibilities are of the State Insurance Company has not served our public well. It has left them open to exploitation.
From what I have been able to find, there has been only ONE qualified prospective candidate who has the qualifications and ethical conduct needed for the position of State of Kansas Insurance Commissioner, and that is Mr. Nathaniel McLaughlin (Attachment 42). Mr. McLaughlin was a candidate along with Mr. Clark Schultz and Ms. Vicki Schmidt in the 2018 election cycle. From what I read online about Mr. McLaughlin, he has something to offer that many of our State of Kansas politicians are lacking, and that is “professional integrity”.
One approach I’ve decided to utilize as a way to educate the public on what the Kansas State Insurance Commissioner does is to share all the documentation you find in your envelope with our State’s higher educational institutions. The corruption of our State’s Insurance Department provides a realtime case study Legal studies, Social Service studies, Communications studies, Journalism, and so forth. Another approach I am hoping to use to educate the public is through social media, such as Facebook. By offering this education, we can prevent the tragic misfortune of having another Vicki Schmidt, Ken Selzer, or Sandy Praeger voted to the post of Insurance Commissioner. Use of the word “tragic” is justifiable, because I believe there are deaths related to the mismanagement of BCBS healthcare benefits. Ms. Kelly, you wanted to be the Governor of Kansas, and you achieved your goal. What will you do now?
Sincerely,
Kristy LaNeva LeClair, MSEd, LMHP
Enclosures
cc:
The Honorable Lynn Rogers
Lieutenant Governor of Kansas
300 Southwest 10th Street
Topeka, Kansas 66612
Federal Bureau of Investigation
Attn: Insurance Fraud Department
1300 Summit Street
Kansas City, Missouri 64105