Michigan Gov. Rick Snyder has proposed a plan that would allow health insurer Blue Cross Blue Shield of Michigan to maintain its non-profit status but would require the insurer to pay an estimated $100 million per year in state and local taxes.
Gov. Snyder's plan aims to streamline regulations for all Michigan health insurers, but it still must be adopted and supported by the state's legislature and BCBSM board. In essence, BCBSM would transition into a non-profit mutual insurance company and would be regulated under the same laws as other insurers and HMOs in Michigan. Currently, there are 14 other Blue Cross Blue Shield companies structured as mutual insurers.
In addition to the taxes, BCBSM would also contribute roughly $1.5 billion over 18 years to establish a new non-profit organization focused on funding programs to improve healthcare in Michigan while keeping it affordable.
In return, BCBSM's rates would be regulated like other health insurers and HMOs instead of being subjected to stricter state oversight.
"Blue Cross has long advocated for all health insurers to play by the same rules," BCBSM President and CEO Daniel Loepp said in a news release. "This plan is not exactly what Blue Cross would have proposed, but it does create a fair and balanced set of rules for health insurance…Our board is open to considering this proposal because it preserves Blue Cross' non-profit mission and sets Michigan's insurance market up for success in the future."
Gov. Snyder's plan aims to streamline regulations for all Michigan health insurers, but it still must be adopted and supported by the state's legislature and BCBSM board. In essence, BCBSM would transition into a non-profit mutual insurance company and would be regulated under the same laws as other insurers and HMOs in Michigan. Currently, there are 14 other Blue Cross Blue Shield companies structured as mutual insurers.
In addition to the taxes, BCBSM would also contribute roughly $1.5 billion over 18 years to establish a new non-profit organization focused on funding programs to improve healthcare in Michigan while keeping it affordable.
In return, BCBSM's rates would be regulated like other health insurers and HMOs instead of being subjected to stricter state oversight.
"Blue Cross has long advocated for all health insurers to play by the same rules," BCBSM President and CEO Daniel Loepp said in a news release. "This plan is not exactly what Blue Cross would have proposed, but it does create a fair and balanced set of rules for health insurance…Our board is open to considering this proposal because it preserves Blue Cross' non-profit mission and sets Michigan's insurance market up for success in the future."
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