Governor Unveils Blue Cross Blue Shield Proposal

Michigan Governor Rick Snyder announced his dramatic proposal to alter the state’s health insurance market during a press conference Tuesday. After years of urging by the Blues to revamp the regulation set forth in Public Act 350 of 1980, the Snyder Administration proposed a restructuring of the Blues to a non-profit mutual insurer.

The proposed reform would cause the Blues to be treated largely like any other insurer in the market. The company would lose its tax exempt status, repeal PA 350, and no longer have involvement from the Attorney General in rate increase requests. The change could mean up to $100 million dollars in new tax revenue to the state.

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

Motivation for changing the Blues structure 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’ position as the state’s insurer of last resort. Beginning in 2014, all insurers must accept all applicants regardless of pre-existing conditions. Additionally, the federal health plan calls for changes that the Blues have trouble complying with under the current regulatory structure.

The legislation will originate in the Senate, with Senate Insurance Committee Chair Joe Hune (R-Hamburg) taking the lead. The Governor has requested the Legislature act prior to leaving in December.

posted by PAA Online , Friday, September 14, 2012 11:18 AM
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Senate Panel Passes Constitutional Amendment for Judges, Establishes Business Courts

The Senate Judiciary Committee acted Tuesday to remove the State Constitution’s prohibition of the election of or appointment of a person of 70 years of age to a judicial office. SJR U unanimously passed the panel on a 4-0 vote.

The measure’s primary sponsor is Senator Steve Bieda (D-Warren). The Michigan Judicial Selection Task Force had previously proposed the reform.

House Bill 5128 was also addressed by the Committee Tuesday, and passed unanimously. The legislation, sponsored by Representative John Walsh (R-Livonia), provides for the authority to establish business courts to relieve courts of crowded dockets.

Under the proposal, a circuit court with three or more judges can assign a business docket and have a judge oversee proceedings specific to business cases.

posted by PAA Online , 11:17 AM
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Detroit Lighting Deal Fails, Sent Back to Committee

After having reportedly reached a deal Tuesday, the Senate failed Wednesday to move Senate Bill 970, legislation designed to authorize the creation of a Detroit public lighting authority.

The proposal, put forward by Governor Snyder, is seen as the first step to relighting the city, which has up to 60% of its street lighting inoperable.

Following a motion by Senate Minority Floor Leader Tupac Hunter (D-Detroit) to vote on the legislation, the Senate Republicans rejected the motion. Senate Majority Leader Randy Richardville (R-Monroe) explained that he expected 10 of the 12 Democratic Caucus members to vote in favor of the bill, including 4 of the 5 Senators representing the City of Detroit. According to Richardville, when it became clear to him that those thresholds would not be met, the bill was not moved.

SB 970, and the companion bills House Bills 5705 and 5688, will now move back to the Senate Government Operations Committee, where further action is unlikely in the near future.

posted by PAA Online , 11:16 AM
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Detroit and State Reach Agreement on Belle Isle Management

Detroit Mayor Dave Bing and Michigan Governor Rick Snyder announced an agreement Wednesday morning that will provide for the state to manage the City’s largest park, Belle Isle, and provide for much needed improvements.

The State of Michigan will lease the park for 30 years, saving the City some $275 million during that period. Beginning in March of 2013, motorists will be required to have the State’s $10 recreational passport to enter the park as it will become a State Park.

Under the agreement, which still needs approval from the Detroit City Council, the State and the City will work together on a plan for major improvements and renovations to the park, as well as a security plan.

posted by PAA Online , 11:16 AM
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Last Week's Survey Results

The question in last week’s PAAdvisory was: Now that both national party conventions have concluded, to which party do you give the best grade on overall performance and effect, the Republican National Convention in Tampa, Florida or the Democratic National Convention in Charlotte, North Carolina?

58% of respondents replied that the GOP Convention in Florida had the better overall performance, while 42% replied that the Democratic National Convention in North Caroline had the better grade.

posted by PAA Online , 11:14 AM
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PAAdvisory Briefs

PAADVISORY BRIEFS

Flint City Council Sues EFM

Members of the Flint City Council have filed suit against Emergency Financial Manager Ed Kurtz, arguing he has no authority over the city given the suspension of Public Act 4 of 2011 based on voter referendum for the November ballot. Michigan Attorney General Bill Schuette had previously ruled that former PA 72 of 1990 was revived and became legal authority while PA 4 is suspended. The Council is seeking an injunction that, if granted, would result in the Mayor and the Council having authority over the city at least until after the November election.

Arrest Made in Capitol Vandalism Event

Lansing resident Jeffery Handley, 20, was arrested Wednesday by Lansing Community College policy on the LCC campus. Mr. Handley was charged with one count of malicious destruction of tombs and memorials, a felony charge punishable by up to five years imprisonment. A pre-trial hearing for the September 6^th event is scheduled for September 20^th in Lansing’s 54-A District Court.

August Revenues Down

Revenue collected in August by the School Aid Fund and major general fund taxes accounted for $1.6 billion in August, 3.8 percent less than August of 2011. Individual income tax and evidently long-awaited Single Business Tax (SBT) refunds accounted for the majority of the difference. Negative net-revenue for the SBT, repealed 5 years ago, was $63.2 million.

House Recounts Finalized

All House Primary election recounts have been completed and no outcomes have been changed. In addition to the confirmed victory of Pam Faris over Patrick “Shorty” Gleason in the 48^th House District Democratic Primary as reported last week, it was confirmed this week that Representative Paul Muxlow defeated his challenger in the 83^rd District; Sharon Gray defeated former Rep. Judy Nerat in the 108^th District; and Rep. Fred Durhal, Jr. (D-Detroit) defeated his challenger in the 5^th House District.

posted by PAA Online , 11:12 AM
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Question of the Week 9/14/12

posted by PAA Online , 10:03 AM
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