Tagged: Blue Cross Blue Shield

A lot of Michigan seniors are not happy with some of the proposed changes to Blue Cross Blue Shield of Michigan.

The legislature is overhauling Blue Cross, changing it from a charity to a state-tax paying business.

But some seniors say it could make their healthcare bills skyrocket, or even take away some of their health insurance plans all together.

Now, if your brain is starting to hurt at this point, don’t worry:  contrary to popular belief, you do not have to be a rocket scientist to understand this healthcare change stuff. Promise.

A state House panel has delayed a hearing, on a proposal to end the tax exempt status of Blue Cross Blue Shield of Michigan.

The legislation would transform the charitable trust into a customer-owned non-profit.

The House Insurance Committee Chairman says lawmakers need to work out concerns with parts of the legislation.

The committee is expected to reconvene this week.

Supporters say the proposal would modernize Blue Cross Blue Shield of Michigan, and allow it to be taxed and regulated as its competitors are.

Critics argue that it would reduce oversight of a company that controls 70 percent of the market.

The legislation passed the state Senate in October.

LANSING, Mich. (AP) - A Republican state lawmaker says Blue Cross Blue Shield of Michigan should pay $500 for every Michigan resident as part of legislation that would convert the company from a charitable trust of the state to a customer-owned nonprofit .

Rep. Tom McMillin proposed Friday that the state's dominant insurer be required to transfer $5 billion to Michigan's 10 million residents as payment for the conversion.

Blue Cross says the conversion would help it better compete under the 2010 Affordable Care Act.

Schuette says Blues overhaul not enough to protect seniors

State Attourney General says the overhaul of Blue Cross Blue Shield of Michigan needs more safeguards in order to protect seniors. The Detroit news reports,

Under legislation sought by Gov. Rick Snyder, the Blues could dramatically reduce its $200 million annual subsidy of the Medicare supplemental insurance by 2016, when a rate freeze Schuette negotiated expires.

After that, the Blues would contribute as little as $15 million annually to a new state-run nonprofit health care foundation for Medigap coverage made available only to Medicare recipients who prove a financial need, Schuette said.

Blue Cross says 70 percent of the 210,000 seniors receiving Medigap insurance would fail a means test to show a financial need for the subsidy, Michigan Insurance Commissioner Kevin Clinton said.

Benton Harbor considers eliminating police force to cut costs

"Two weeks after voters in Benton Harbor rejected a millage renewal, the city’s emergency financial manager is laying out a few grim options. Joe Harris told reporters Monday afternoon one option is eliminating the police force. The millage would’ve raised a little more than a million dollars this year alone. That represents twenty-percent of Benton Harbor’s yearly revenue," Lindsey Smith reports.

University of Maryland added to "Big Ten"

"The Big Ten athletic conference added the University of Maryland to its roster Monday. Rutgers University is expected to announce its plans to join the conference today. That will bring the total number of schools in the conference to 14, and is likely to mean big increases in revenues for the universities as well as the conference," Chris Zollars reports.

Michigan’s attorney general says state lawmakers must add more safeguards for seniors to legislation that would overhaul Blue Cross Blue Shield of Michigan.

Bill Schuette testified Monday before the House Insurance Committee.

Schuette said bills passed last month by the Senate did not do enough to make sure Blue Cross continues to offer Medigap plans to seniors.

The program covers costs that Medicare doesn’t.

The attorney general said the proposal would drastically cut funding for Medigap, and only requires Blue Cross to offer it through 2016.

“I think the last thing we want is to have skyrocketing Medigap rates, or Medigap disappear altogether,” Schuette said.

Blue Cross officials say the measure gives seniors plenty of time to switch to more comprehensive and affordable plans.

The legislation would end Blue Cross’ tax exempt status. In return, the state would have less oversight of the Michigan’s largest health insurer.

Hearings on overhauling Michigan’s biggest health insurance provider continue today in Lansing.

Critics and competitors say other insurers have been forced to subsidize Blue Cross because the company negotiated contracts with many hospitals requiring them to accept payments lower than what they offer any other insurance company.

The practice led to anti-trust lawsuits and an order by the state insurance commissioner banning what’s called “most favored nation” clauses without his prior approval.

In health news. . .

Officials with Blue Cross Blue Shield of Michigan say the state Legislature must pass bills to overhaul the health insurer by the end of the year. Under the measures, Blue Cross would become a customer-owned non-profit, and would have to pay state and local taxes. The Lansing State Journal reports,

Even though it would lose its tax-exempt status, Blue Cross says the change in classification — and the lower government regulation that goes with it — is essential for it to be able to compete with other insurers under the Affordable Care Act.Under federal law, Blue Cross must have its products and rates ready by March for an online health exchange where people can compare and buy their own insurance plans, but the organization won’t make it because of the way it’s currently regulated by the state.

Meanwhile, as Rick Pluta reports, "Michigan is unlikely to meet a Friday deadline to tell the Obama administration if it will create a statewide online exchange for people to shop for health insurance. The alternative is for Michigan to become part of a federally managed exchange."

Tribe asks federal court to dismiss lawsuit to block Lansing casino

"A federal judge is being asked to dismiss a lawsuit aimed at stopping plans for a casino in downtown Lansing. The Sault Sainte Marie Tribe of Chippewa Indians delivered its response this week to the lawsuit filed by Michigan’s Attorney General in September.  The lawsuit claims the casino project violates federal law as well as a gaming compact between the state and the tribe. The tribe says that’s not true. The tribe wants to resolve this legal challenge before asking the federal government to take the land around Lansing’s convention center into trust.   The land must fall into trust…before the tribe can begin construction of its casino," Steve Carmody reports.