Governor's BCBSM Reform Legislation Introduced; Hearings Held

Last week, Michigan Governor Rick Snyder announced his dramatic proposal to alter the state’s health insurance market through proposed reform to change Blue Cross Blue Shield of Michigan (BCBSM) into a nonprofit mutual company and treat it largely like any other insurer in the market. This week, legislation encompassing the proposal was introduced by Senate Insurance Committee Chair Joe Hune (R-Hamburg), Senate Bills 1293 and 1294.

The Senate Insurance Committee held two hearings on the proposal, highlighted by the presentation of Financial and Insurance Regulation Commissioner Kevin Clinton.

Under the proposal, BCBSM would lose its tax exempt status, no-longer involve the Attorney General in rate increase requests and be required to pay $1.5 billion over 18 years into an independent nonprofit working towards the overall improvement of the state’s health.

The Governor has requested Legislative action prior to leaving in December.

Meanwhile House Insurance Committee Chairperson Pete Lund (R-Shelby Township) has announced that the House Insurance Committee will hold its first hearing on the legislation next week. While no timeline has been announced, the Chairman has reportedly informed Committee members to be prepared to spend significant time on the matter during the November and December session schedule.

posted by PAA Online , Friday, September 21, 2012 11:09 AM
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