Chicago Alderman Edward M. Burke, as Chair of the Finance Committee, sits on the city's Benefits Committee, which "chooses health insurance administrators, reviews their performance, and hears appeals from city employees whose claims have been denied." Blue Cross/Blue Shield was paid $10.5 million to administer preferred provider organization (PPO) and point of service (POS) insurance plans, and an additional amount to administer a health maintenance organization (HMO).
The Chicago Sun-Times, however, reported that Blue Cross/ Blue Shield is also a client of Burke's law firm. As Dan Sephe, of the Better Government Association said, "representing a company that has large contracts with the city given out [and reviewed] by the committee you serve on - it raises a huge red flag."
Just another addition to our catalog of conflicts of interest affecting health care leadership....
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