Senate Moves BC/BS Reform - Table Set for House Action

The State Senate approved the new Blue Cross Blue Shield reform package Thursday, without the abortion language that caused the measures’ early January veto by Governor Snyder. The legislation, Senate Bills 61 and 62, passed the Senate on unanimous votes of 36-0 and 37-0, respectively.

The legislation proposes to 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, repeal PA 350, and no longer have involvement from the Attorney General in its rate increase requests. Further, the proposal calls for the Blues to pay $1.5 billion over 18 years into an independent nonprofit, working toward the overall improvement of the state’s health.

Senate Bill 61 was amended twice on the Senate floor – most substantively by Senator Mark Jansen (R-Gaines Township) to ensure the new entity’s board would not include an employee, officer, board member or lobbyist for a health care corporation, insurer provider or third party administrator.

The measure now moves to the House Insurance Committee where Chairman Pete Lund (R-Shelby Township) has promised thorough discussion.

posted by PAA Online , Friday, February 1, 2013 10:59 AM
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