Michigan legislators are starting fresh after a veto by Gov. Rick Snyder with a new bill that would allow Blue Cross Blue Shield of Michigan to change its corporate structure and pay taxes, according to a report by Crain's Detroit Business.
Gov. Snyder supported the original bill that would enable Blue Cross Blue Shield of Michigan to change from a tax-exempt organization to a non-profit mutual health insurer, but he vetoed it when it reached his desk over abortion language that was included to garner Republican support for the bill. Gov. Snyder, a Republican, said the language went too far and requested lawmakers draft a cleaner version free of the abortion language.
Under the new corporate structure, Blue Cross Blue Shield of Michigan would pay an estimated $100 million in state and local taxes each year and provide up to $1.5 billion over 18 years to form a separate, charitable non-profit. In return, it would face less regulation in rate changes and other business strategy decisions.
Fourteen other Blue Cross Blue Shield companies nationwide are structured as mutual insurers. If the law is approved, the company's board would still need to decide whether and how to change its structure.
Texas Health Resources, BCBS Form ACO
Health Insurers Open Retail Stores Akin to Apple's Genius Bar
Gov. Snyder supported the original bill that would enable Blue Cross Blue Shield of Michigan to change from a tax-exempt organization to a non-profit mutual health insurer, but he vetoed it when it reached his desk over abortion language that was included to garner Republican support for the bill. Gov. Snyder, a Republican, said the language went too far and requested lawmakers draft a cleaner version free of the abortion language.
Under the new corporate structure, Blue Cross Blue Shield of Michigan would pay an estimated $100 million in state and local taxes each year and provide up to $1.5 billion over 18 years to form a separate, charitable non-profit. In return, it would face less regulation in rate changes and other business strategy decisions.
Fourteen other Blue Cross Blue Shield companies nationwide are structured as mutual insurers. If the law is approved, the company's board would still need to decide whether and how to change its structure.
More Articles on Blue Cross Blue Shield:
Can Cost-Cutting Improve Quality of Care?Texas Health Resources, BCBS Form ACO
Health Insurers Open Retail Stores Akin to Apple's Genius Bar