Gov. Snyder Announces Big Plans To Change Health Coverage

InsurancePoliticsBusinessHealthcare ProvidersRick SnyderMichigan Legislature

Gov. Rick Snyder is proposing big changes on how Michigan's largest health insurance provider is regulated.

Snyder wants Blue Cross Blue Shield of Michigan to become a non-profit mutual insurance company regulated under the Michigan insurance code like other providers.

The plan requires Blue Cross Blue Shield of Michigan to contribute about $1.5 billion over 18 years to a new non-profit entity whose purpose is to fund initiatives that foster healthier lifestyles, provide better access to health care and improve public health.

This is an unprecedented investment in the health and wellness of Michigan families, according to the Governor's office.

"This is an exciting opportunity to improve the health of Michiganders and create a modernized, efficient health care marketplace that spurs innovation and streamlines outdated regulations," Gov. Snyder said.

Snyder's plan, which requires approval by the Legislature and the Blue Cross board of directors, calls to reinvent health care in Michigan.

"It's especially important that we have a system that promotes wellness for our children and seniors. This proposal will ensure that quality health care remains affordable and accessible for everyone," Snyder added.

To find out more specifics about what the bill proposes, click here.

Blue Cross Blue Shield of Michigan also responded to, what they refer to as, the modernization of health insurance regulations.

"If the Governor’s plan is adopted by the Michigan Legislature and supported by a vote of the BCBSM Board, Blue Cross would transition the company’s structure to a non-profit mutual insurance company that would be regulated under the same law as other insurers and HMOs in Michigan. BCBSM would join 11 other Blue Cross Blue Shield companies around the country structured as mutual insurers, where policyholders have ownership rights defined by each company’s bylaws. These companies operate in 18 states."

“We are pleased that the Governor respects Blue Cross’ desire to remain nonprofit and continue our longstanding efforts to advance quality and affordable health care for all Michiganders,” Daniel J. Loepp, BCBSM president and CEO said. “Blue Cross will remain based in Michigan, invested in our communities and focused on improving health care for everyone who calls Michigan home.”

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