Pa. senator’s appointment criticized

Three consumer watchdog groups have questioned state Sen. Robert Mellow’s appointment to the Blue Cross of Northeastern Pennsylvania Board of Directors.

Citing the recent bonus scandal that rocked Harrisburg, they said Mellow’s paid position on the health insurance provider’s board is ill-timed, unwise and reeks of questionable ethics.

Mellow dismissed the criticism and staunchly defended his ability to remain impartial. Mellow’s May appointment to the Hospital Service Association of Northeastern Pennsylvania Board – the insurer’s corporate name – was announced July 29. He will earn a base pay of $25,000 with the ability to earn about $10,000 more per year factoring in meeting attendance stipends.

Blue Cross board Chairman John Moses, a Wilkes-Barre attorney, said he was honored that Mellow joined the board.

“He has been a powerful voice for northeastern Pennsylvania in decision-making across the state, and is a leading advocate for accessible, affordable health care and the rights of working families,” Moses said in the announcement. “Sen. Mellow knows this area, he knows our issues, and he knows the concerns of our members, and he will add a great voice to our discussions.”

Mellow senatorial district includes portions of Luzerne and Monroe counties and all of Lackawanna County. In Luzerne County his district includes Avoca, Dupont and Duryea. Mellow is a Democrat from Peckville.

On Tuesday night, the 10-term senator said he was “absolutely elated” to be considered for the appointment.

“I have a tremendous amount of credibility in Harrisburg and I know a lot about health care. … I think I can be an asset,” Mellow said.

While some agree he might be qualified, they say that doesn’t mean he should serve on the board.

Barry Kauffman, executive director of Common Cause of Pennsylvania, a Harrisburg-based nonpartisan, non-profit advocacy organization created to hold elected leaders accountable to the public interest, chided the acceptance of the board position. He questioned whether Mellow could serve both taxpayers and Blue Cross at the same time.

“One of the goals of the state Senate is to look out for the taxpayers. Who are you playing for at that point? For the team of Blue Cross or for the taxpayers?” Kauffman asked.

“I have never compromised my vote. I’m not going to compromise my vote for Blue Cross,” he said.

Kauffman said that while Mellow’s board position probably isn’t a violation of the state ethics law, as long as Mellow disclosed the affiliation, it still presents an improper appearance.

“He can’t have split loyalties,” Kauffman said, pointing out there’s no way to know how his Blue Cross position plays into his decision making when it comes to legislation or lobbying other lawmakers.

Mellow said he vetted his appointment to the Senate and was given the green light.

Kauffman said it was a wise decision for Blue Cross to appoint Mellow and that there was nothing improper on its part. However, he said, both sides should have thought about the way it would play out in the public a little better, especially in light of what’s gone on in Harrisburg recently.

On July 10, the Attorney General’s Office filed numerous theft charges, including criminal conspiracy and conflict of interest charges, against 12 suspects, including a state representative, a former House Democratic Minority Whip and four current House Democratic staffers. The investigation has uncovered the illegal use of millions of dollars in taxpayers’ funds, resources and state employees for political campaign purposes.

Attorney General Tom Corbett said the charges are part of an ongoing grand jury probe into bonuses paid to employees of the Pennsylvania Legislature along with the use of state resources for political campaigns.

On July 7, 2005, legislators voted themselves pay raises in the middle of the night. The backlash led to a repeal of the raises and some lawmakers gave back the unvouchered expenses they collected before the repeal, but others, including Mellow, never did.

James Browning, director of the Pennsylvania Public Interest Research Group, a Philadelphia consumer advocacy group, said ethics has been at an “all-time low in Harrisburg and now is the time to set a higher standard, not cash in.” He said Mellow’s decision “definitely lowered the ethical bar.”

Mellow said he is not connected to the bonus scandal and said comparing it to the board appointment “is grasping at straws.”

Tim Potts, president of Democracy Rising Pennsylvania, a Carlisle-based government watchdog, said he believes Mellow should step down from either the board or the Senate. At a minimum, he said, Mellow should turn down his Blue Cross salary. Blue Cross spokeswoman Michelle M. Davidson said none of the 17 board members has declined their base pay.

“We think it’s a bad idea. It’s a conspicuous conflict of interest,” Potts said, agreeing with Kauffman’s assertions that the situation is not a violation of the state’s ethics code. He said that doesn’t mean it’s right.

A closer look at Blue Cross of NEPA

The Wilkes-Barre-based not-for-profit company is the smallest of the state’s four non-profit Blue Crosses that also include Independence, Highmark and Capitol and covers nearly 600,000 members in 13 northeast and central Pennsylvania counties. Its 17-member Board of Directors consists of: