Blues Bills To See Action Next Week

Senate Bills 1293 and 1294, introduced by Senate Insurance Committee Chair Joe Hune (R-Hamburg), are scheduled for hearing before his committee next Tuesday, the day before the Legislature’s only session day prior to the November election.

Michigan Governor Rick Snyder announced his dramatic proposal to alter the state’s health insurance structure in early September. After years of urging by the Blues to revamp the regulation set forth in Public Act 350 of 1980, the Snyder Administration and the Legislature appear prepared to act before year’s end.

The difference now is the U.S. Supreme Court’s decision to uphold the vast majority of the Patient Protection and Affordable Care Act which will ultimately end Blue Cross’s position as the state’s insurer of last resort. Beginning in 2014, all insurers must accept all applicants regardless of pre-existing conditions.

The proposed reform would change the Blues into a nonprofit mutual company and treat it largely like any other insurer in the market. The company would lose its tax exempt status, with future rate adjustments being decided by the State’s insurance commission.

Further, the proposal calls for the Blues to pay $1.5 billion over 18 years into an independent nonprofit foundation working towards the overall improvement of the state’s health.

posted by PAA Online , Friday, October 12, 2012 10:42 AM
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