Blue Cross Blue Shield Legislation Signed

The ongoing saga surrounding the legislative package to reform Blue Cross Blue Shield of Michigan came to an end Monday when Governor Rick Snyder added his signature. Senate Bills 61 and 62 are now Public Act 3 and 4 of 2013, respectively, and both have immediate effect.

The legislation essentially mirrors the package from last session and 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 rate increase requests. Further, the proposal calls for the Blues to pay $1.56 billion over 18 years into an independent nonprofit working toward the overall improvement of the state’s health.

Senators Joe Hune (R-Hamburg) and Virgil Smith (D-Detroit), sponsors of the legislation, joined the Governor and Blue Cross Blue Shield officials at a ceremony to sign the bills at the company’s Detroit headquarters.

Meanwhile, while he indicated he would not bring legal action, Michigan Attorney General Bill Schuette reiterated his opposition to the reform based on his belief that potential Medigap increases after 2016 would adversely affect senior citizens.

posted by PAA Online , Friday, March 22, 2013 10:29 AM
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