Plan Transitions Blue Cross To Nonprofit Mutual Insurance Company

The Michigan Business and Professional Association (MBPA) and the Michigan Food and Beverage Association (MFBA) want to keep you up to date on a new proposal by Governor Rick Snyder that will dramatically change how Michigan’s largest health insurance provider is regulated. His plan is for it to become a nonprofit mutual insurance company that is regulated under the Michigan Insurance Code, like all the other health insurers in the state. 

Governor Snyder’s plan would create one set of rules for health insurers, leveling the playing field to increase competition, reduce healthcare costs, and give consumers more choices. This proposed change stems from his special message he delivered last September 2011. Snyder’s mission was to streamline and simplify burdensome regulations, which in turn, would reduce costs for job providers and create jobs. 

Among other provisions, the governor’s plan requires Blue Cross Blue Shield of Michigan to contribute about $1.5 billion over 18 years to a new nonprofit entity whose purpose is to fund initiatives that foster healthier lifestyles, provide better access to health care and improve public health. This plan also protects seniors by freezing “Medigap” coverage rates for four years.

Now the governor’s plan has to go forward for approval by the Michigan Legislature and be supported by the BCBSM Board. Snyder hopes to achieve these goals by the end of this year. MBPA/MFBA will keep you up to date as changes occur.

Please contact our Government Relations Team with any questions/comments by email at: bbochniak@michbusiness.org or by phone at (586) 393-8800.