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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August Unemployment Rate Increases Again - to 9.4%

August numbers released this week by the Department of Technology, Management and Budget showed the state’s unemployment rate continued to rise, for the fourth straight month, reaching 9.4%. The number of unemployed persons rose by 16,000 to 437,000.

The rate however, was still a full percentage point lower than August of 2011’s 10.4%, an increase in 54,000 employed individuals.

The state realized decreases in manufacturing, trade, transportation and utility jobs and gains in professional services, government and construction areas. Michigan’s largest employment market, Detroit-Warren-Livonia, saw an increase of .5% from July to August, landing now at 10.7%. The market’s August 2011 rate was 11.7%.

posted by PAA Online , 11:07 AM
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Virtual City Authority Assembled

An intergovernmental agreement between Grand Rapids and Livonia, and signed by Governor Rick Snyder, has created the new Michigan Municipal Services Authority as announced and described by the Governor this week.

The authority’s charge is to encourage the adoption of best practices by local units of government, including collaboration among units.

The Governor received eight appointees to the twelve member authority. Grand Rapids and Livonia received two each.

Grand Rapids appointed:

Scott Buhrer, Grand Rapids Assistant City Manager for Fiscal Services
Eric DeLong, Grand Rapids Deputy City Manager

Livonia appointed:

James Cambridge, Attorney with Kerr, Russell and Weber, PLC
Brian Meakin, Meakin & Associates Insurance President and Livonia Community Foundation President

Governor Snyder appointed:

Stacie Behler, Meijer Incorporated Vice President of Public Affairs
Robert Daddow, Oakland County Deputy County Executive
Peggy Jury, CPA, Retired Plante & Moran PLLC partner
Don Leclair, Retired Ford Motor Company Chief Financial Officer
Patricia Poppe, Consumers Energy Vice President of Customer Experience & Operations
Rich Sheridan, Menlo Innovations Founder and CEO
Donald Snider, MEDC Senior Vice President of Urban Economic Development
Doug Wiescinski, Plante & Moran PLLC Partner

The Authority’s Executive Committee will be composed of Stacie Behler, Robert Daddow and Don Leclair.

posted by PAA Online , 11:05 AM
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House Panel Takes Testimony On Measure Banning Treasurer Bonuses

The House Committee on Local, Intergovernmental and Regional Affairs took testimony Thursday on legislation aimed at preventing county treasurers from collecting bonuses based on the collection of delinquent taxes.

House Bill 5839, sponsored by Representative Marty Knollenberg (R-Troy), made no secret of the fact that the legislation is aimed at Wayne County Treasurer Raymond Wojtowicz. Current state law allows for treasurers to receive commission on collection of delinquent property taxes – but only treasurers elected or appointed prior to October 1, 1999.

The bill’s sponsor indicated that three county treasurers are currently permitted, under law, to receive such commissions; however, Treasurer Wojtowicz is the only one that does so.

Representative Knollenberg is running for Oakland County Treasurer.

posted by PAA Online , 11:04 AM
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Last Week's Survery Results

The question in last week’s PAAdvisory was: Are you more or less optimistic about Michigan’s economic well-being than you were a year ago?

50% of respondents replied that they are more optimistic, 28% replied that they are less optimistic, and 22% indicated no difference than a year ago.

posted by PAA Online , 11:03 AM
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PAAdvisory Briefs

Duggan Mayoral Exploratory Committee Reportedly Coming

According to sources, Detroit Medical Center CEO Michael Duggan will be forming an exploratory committee to take a step closer to a long-rumored run for Detroit Mayor in 2013. The former aide to longtime Wayne County Executive Ed McNamara has evidently been meeting with supporters in recent days and may be making an announcement in coming weeks.

Stabenow Secures Farm Bureau Endorsement

Incumbent U.S. Senator Debbie Stabenow (D-Lansing) has received the endorsement of Michigan Farm Bureau’s AgriPAC. MFB President Wayne Wood made the announcement Thursday. The current Chair of the U.S. Senate Agriculture Committee was lauded in the announcement for her bipartisan work on the 2012 Farm Bill.

Former Senate Fiscal Agency Head Olson Passes

Gary Olson, longtime Director of the Senate Fiscal Agency, passed on Tuesday at the age of 57 after a battle with cancer. Mr. Olson was the longest serving SFA director, taking the position in 1991 when his predecessor, Doug Roberts, was named State Treasurer. Olson retired in 2012 after a 32 year career in public service. Funeral services will be at noon, Saturday, September 22^nd at the University Club on Forest Road in Lansing.

State Revenue Up

The House Fiscal Agency reported early this week that the state’s revenue is up 1% from a 2011. $15.84 billion in revenue has been collected year-to-date in the current fiscal year, up $155.9 million over last year at this time. General Fund revenue is $25 million ahead of expectations and the School Aid Fund is $30 million above anticipated numbers.

Sweeney to Beaumont

Former Legislative Liaison for the Department of Technology, Management & Budget, Matt Sweeney, has taken a position as the Government Relations Director for the Beaumont Health System. Sweeney had previously served as Chief of Staff to Senator Cameron Brown from 2004 – 2010.

posted by PAA Online , 10:58 AM
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Question of the Week 9/21/2012

posted by PAA Online , 10:57 AM
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