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The founder of the Vermont Health CO-OP is stepping down as board chair as part of an effort to convince skeptical state regulators to reconsider a recent decision denying the CO-OP a license to sell insurance.
Mitchell Fleischer, the CEO of private insurance and investment firm Fleischer Jacobs Group, says he's ceding his position to minimize distractions as the federally funded CO-OP tries to bounce back from a scalding decision issued by the Department of Financial Regulation last month that accused the fledgling CO-OP of mismanagement and financial instability.
In that decision, DFR commissioner Susan Donegan rejected the CO-OP's application to sell insurance on the federally mandated health care exchange set to launch in January. Using federal funds allocated by "Obamacare," the CO-OP would offer a member-owned alternative to the only two companies currently licensed to sell insurance on the exchange: Blue Cross Blue Shield of Vermont and MVP.
For now, those plans are on hold. Donegan has said the CO-OP has two choices — submit a new application for licensure, or appeal DFR's decision to the Vermont Supreme Court. Neither could realistically happen quickly enough to let the CO-OP join the health care exchange this year. So the CO-OP's leaders are banking on a third approach: convince Donegan to reopen her decision.
But the CO-OP needs to make significant changes to have any chance of winning over Donegan. The questions CEO Christine Oliver and Fleischer (pictured) found themselves asking themselves, Fleischer says, boiled down to: "What can we fix? ... And can we get all of this done in the next month?"
Fleischer's resignation — which came officially on June 13 — is part of that plan.
In this week's wood pulp-and-ink edition of Seven Days:
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William R. Milnes Jr. won't be getting any more money out of Blue Cross Blue Shield of Vermont. At least, not anytime soon.
A federal judge has dimissed a lawsuit filed by the HMO's former chief executive officer that sought an additional $575,000 in retirement pay.
Readers will remember Milnes as the Blue Cross exec who departed the company with a jaw-dropping $7.2 million golden parachute in 2008. State insurance regulators ruled in 2009 that the pay package was excessive under state insurance law, and ordered Blue Cross to reimburse $3 million of that sum to subscribers in the form of lower rates.
In the aftermath, Milnes moved to Florida. But he resurfaced in Vermont last year when he sued Blue Cross in federal court for another $575,000 in retirement pay — plus $200,000 in interest — that he said the company still owed him.
Last week, U.S. District Judge J. Garvan Murtha ruled that Blue Cross doesn't have to pay it. The company would be in violation of that same insurance law barring excessive compensation if it awarded the $575,000 to Milnes, the judge ruled. Murtha also said the "impracticability doctrine" excuses Blue Cross from meeting its contractual obligation to Milnes.
"Mr. Milnes would have BCBSVT pay him additional compensation above and beyond the amount already ruled excessive," Murtha wrote in the 18-page decision. "Although due to Mr. Milnes following his retirement, these payments reward work performed during the same years BISCHA ruled he received excessive compensation."
The first round of noise studies is in from Kingdom Community Wind, the contentious wind-energy development straddling a ridgeline between Lowell and Albany.
The verdict?
For the most part, the 21 Vestas turbines strung along the spine of the Lowell Mountains did not generate enough noise to violate the conditions under which the Public Service Board approved the Green Mountain Power project. But in a few instances, noise at the remote Northeast Kingdom wind project did spike high enough to violate GMP's permit.
That’s according to a report GMP filed yesterday (PDF) with the PSB. Wind opponents and neighbors, however, aren’t satisfied with the study, and say the noise generated by the 400-foot-tall turbines is still loud enough to disrupt the quality of life for nearby residents.
“I don’t call it that we have a quality of life anymore,” says Shirley Nelson, who along with her husband, Don, lives on more than 580 acres on the eastern slope of the Lowell Mountains. Their property borders the Lowell project, and the Nelsons have been vocal opponents of it. The Nelsons and GMP are entangled in a lawsuit over disputed ownership along a section of the ridgeline.
“I sometimes wake up with headaches, and can’t sleep the night through anymore. My ears ring almost constantly when the turbines are going,” says Shirley Nelson.
Don Nelson likened the noise inside the couple’s farmhouse to the sound of rushing water. Outside, he says, the turbines sound like “a jet plane on the horizon.” The noise isn’t steady, the Nelsons say, but pulses in and out. Nearby neighbors, they say, have to run a fan at night in order to block out the turbine noise and get to sleep.
One condition of GMP's permit to operate the wind farm is that sound levels not exceed 45 decibels outside of any existing homes near the project and 30 decibels in interior bedrooms. (GMP equates 45 decibels to the ambient noise level inside a library.) The utility must collect noise measurements from the project for at least two weeks, four times a year, for the first two years of operation. GMP hired White River Junction-based Resource Systems Group, Inc., to collect and analyze the first round of noise data, and submitted the data to a third party for confirmation that it was sufficient for a thorough analysis.
In this week's issue of Seven Days, starring local musician Jim Rooney on the cover...
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News and politics stories in this week's issue of Seven Days...