Senate Amends, Passes Blues Reform

Senate Bills 1293 and 1294, introduced by Senate Insurance Committee Chair Joe Hune (R-Hamburg), passed the Senate Wednesday during the upper chamber’s only scheduled session day before the November election.

After years of urging by the Blues to revamp the regulations set forth in Public Act 350 of 1980, Michigan Governor Rick Snyder announced his dramatic proposal to alter the state’s health insurance market in early September.

The legislation proposes to change the Blues into a nonprofit mutual insurance company and treat it largely like any other insurer in the market. The company would lose its tax exempt status, PA 350 would be repealed, and no longer have involvement from the Attorney General in rate increase requests. Further, the proposal calls for the Blues to pay $1.5 billion over 18 years into an independent nonprofit working towards the overall improvement of the state’s health.

The measures passed on votes of 33 – 4 with Senators Bruce Caswell (R-Hillsdale), Patrick Colbeck (R-Canton), Tupac Hunter (D-Detroit) and Mark Jansen (R-Gaines Township) voting no.

Many changes were made at both the committee level and on the Senate floor, including an amendment regarding the somewhat controversial issue of requiring an independent valuation of the Blues. Senator Hune won an amendment requiring the valuation only in the instance of Blue Cross changing ownership – an action prohibited in the legislation.

The two bills now move to the House of Representatives where action, while expected during the lame duck session, may not be as swift.

posted by PAA Online , Friday, October 19, 2012 11:04 AM
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