Testimony Against Blue Cross Blue Shield Deal

The Michigan House of Representatives is currently considering legislation (which has already been approved by the Michigan Senate) that would allow Blue Cross of Blue Shield of Michigan to change form from a nonprofit corporation to a “nonprofit mutual.” Blue Cross Blue Shield argues that it won’t be able to participate and compete in the insurance market under the Affordable Care Act without this change. The Governor supports this legislation and it’s clear that the goal is to get this legislation passed in the current lame-duck session.

MICHUHCAN is strongly opposed to this legislation for several reasons. We think it’s irresponsible for the legislature to rush such a complex decision, especially when we’re dealing with the insurer that controls 70% of Michigan’s insurance market share. We also don’t think that the public is getting a fair deal as the legislation doesn’t impose sufficient monetary requirements and oversight on Blue Cross Blue Shield.

The House Insurance Committee hosted three days worth of hearings on this subject, and broke the days down by major issues raised by the legislation. MICHUHCAN’s Executive Director Marjorie Mitchell spent Monday in Lansing listening to testimony and delivering remarks to the Committee. MICHUHCAN’s testimony focused on two of the many issues that directly impact Michigan citizens – creating strong oversight mechanisms and ensuring that consumers become and remain well-protected under rate review.

We’ve attached the testimony to this post for your information. Please feel free to e-mail us at contact@michuhcan.org if you have any questions or comments. We promise to keep working hard to try to slow this bill down and will keep you updated as this situation develops.

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Read the full testimony delivered yesterday:

MichUHCAN BCBSM Conversion Testimony (pdf)

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