The bill changing Blue Cross Blue Shield to be signed into law Monday

Mar 17, 2013

Governor Snyder is scheduled to sign a law tomorrow that will transform Blue Cross Blue Shield of Michigan into a customer-owned non-profit insurance company.

Supporters say the change will make Michigan’s health insurance market more competitive.

But the AARP and other opponents complain the change will eventually cost nearly 200 thousand Michigan senior citizens the Medi-gap coverage they need.

Mark Hornbeck is with AARP. He says Michigan seniors are already struggling with the state’s new tax on pensions, the loss of the senior state income tax deduction and a reduction in the homestead property tax exemption.

“We think seniors are getting hit hard enough without also having to pay additional money for Medi-gap,” says Hornbeck.

Hornbeck says most current Medi-gap users will lose their state subsidy beginning in 2016.