The legislation essentially mirrors the
package from last year 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 $1.5 billion over 18 years into an independent
nonprofit working towards the overall improvement of the state’s health.
As soon as the legislation is signed into law
by the Governor, the process of transitioning to a nonprofit mutual will begin
and will likely run through the end of 2013.