House panel taking up Blue Cross overhaul proposal

By: The Associated Press Email
By: The Associated Press Email

LANSING, Mich. (AP) - A Michigan House panel has taken up a proposal to overhaul Blue Cross Blue Shield of Michigan that's passed the state Senate.

The House Insurance Committee plans to meet Tuesday to hear testimony related to a measure that would end Blue Cross' tax-exempt status and change the health insurer from a charitable trust to a customer-owned nonprofit.

Critics argue it doesn't adequately protect elderly and vulnerable residents and deregulates Michigan's largest insurer. Supporters including Republican Gov. Rick Snyder say it levels the playing field among health insurers and modernizes an organization governed by a separate law from others.

Committee Chairman Pete Lund has said he wants the measure to get a full House vote by year's end.

The plan requires approval by the Legislature and Blue Cross' board of directors.


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