University of Virginia Library

Blue Cross Practices Come Under Fire

By Alan Cole

Kevin Mannix, president of the
Student Council, received a letter
yesterday concerning alleged practices of
questionable intent by the Blue
Cross-Blue Shield insurance company.

The letter was sent by Patrick D.
Sarsfield, the Administrator of the
University Student Hospitalization
Program. Mr. Sarsfield represents the Life
Insurance Company of North America
which, beginning this year, has taken over
the Student Council's mandatory
insurance program.

The program had originally been in
the hands of Blue Cross. Last spring, the
Student Council investigated other
insurance companies and approved a switch to
the LINA plan because of various advantages.

Although the LINA plan costs $70 for the
full year, five dollars more than the Blue Cross
plan, the LINA plan covers students from the
first day of coverage for any intensive care
treatment for conditions existing before the
LINA plan took effect.

Under Blue Cross, there is no coverage for
preexisting conditions until the Blue Cross plan
has been in effect for six months.

Another advantage of the LINA plan,
according to Mr. Mannix, is that the deductible
paid by the students is only $11. Under the
Blue Cross plan, the student must pay a $200
deductible.

In his letter to Mr. Mannix, Mr. Sarsfield
related the case of James R. Caplan, a graduate
student of Arts and Sciences who had been
enrolled in the Blue Cross program. Mr. Caplan
said that he wished to switch from the Blue
Cross program to the LINA program starting
November 1, having already paid Blue Cross for
the period of September 1 to November 1.

The problem arose when Blue Cross sent a
bill to Mr. Caplan on September 30 which was
due October 1. The bill informed him that he
must pay for the period of October 1 to
December 1 in order to place his contract in a
prepaid status. If Mr. Caplan neglected to pay
for this entire period he would not be covered
for the month of October.

Mr. Caplan and Mr. Mannix said that the
only reason Blue Cross has for sending out this
adjusted bill is to prevent students from
switching from Blue Cross to LINA.

In his letter to Mr. Mannix, Mr. Sarsfield
pointed out that the billing date on Mr.
Caplan's invoice was September 30 and the
premium was due October 1.