Gov. Bryant Modifies Executive Order 1327

JACKSON – Gov. Phil Bryant today modified Executive Order 1327, which had previously required Blue Cross and Blue Shield of Mississippi to temporarily reinstate ten Mississippi hospitals pending an investigation by the Department of Insurance. As modified, the Order no longer requires action on the part of Blue Cross or the hospitals, but the Department of Insurance is still required to conduct a hearing or to submit a report to the Governor on why no hearing is necessary. Blue Cross also voluntarily dismissed its related federal lawsuit today.

Gov. Phil Bryant had the following statement upon modifying Executive Order 1327:

“I appreciate Blue Cross’s willingness to re-engage in discussions with the hospitals to see whether there is room for a compromise that will benefit all involved, including most importantly the patients that Blue Cross insures and these hospitals serve. I am also encouraged that four of the affected hospitals were recently readmitted to the Blue Cross network.

Although my attorneys and I still believe my original order would have more than likely been upheld in full by the courts, continued litigation and potential appeal would stretch well beyond the order’s original 60-day expiration. In light of the cost and time associated with protracted litigation, and because I believe more progress can be made on this issue outside of litigation, I am amending my order to remove those portions contested in federal court.

I appreciate the work of Attorney General Jim Hood and Assistant Attorney General Harold Pizzetta in defending my position and for their counsel throughout the process.

While Executive Order 1327 has been modified to exclude the provisions requiring action on the part of Blue Cross, it still requires the Department of Insurance to continue its investigation and hold hearings, if appropriate, or to issue a report if the Department determines that no hearing is required.

If there is no private or administrative solution to this matter, I expect legislative action during the 2014 session.”

Governor Phil Bryant Release