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Mackinac Center for Public Policy
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2013 Senate Bill 62: Convert Blue Cross to non-profit "regular" insurance company

Public Act 5 of 2013

  1. Introduced by Sen. Virgil Smith, Jr. (D) on January 16, 2013, to convert Blue Cross Blue Shield into a “mutual insurance company” and make it subject to the same regulations as regular health insurers. Although it would remain a non-profit, current restrictions on the entity's ability to own for-profit subsidiaries would be reduced, and it would no longer be subject to close oversight by the state Attorney General. In return for being granted this conversion, BCBS would pay "up to" $1.56 billion over 18 years (meaning it could be less) into a fund that would supplement various health-related government programs, with specific spending items selected by a board of political appointees. The bill does not include abortion restrictions that caused Gov. Snyder to veto the same measure when passed late last year.
    • Referred to the Senate Insurance Committee on January 16, 2013.
      • Reported in the Senate on January 30, 2013, with the recommendation that the bill pass.
    • Amendment offered by Sen. Bruce Caswell (R) on January 31, 2013, to prohibit BCBS from cutting for three years the reimbursement rates it has agreed to pay to small hospitals. The amendment failed 6 to 31 in the Senate on January 31, 2013.
      Who Voted "Yes" and Who Voted "No"

  2. Passed 37 to 0 in the Senate on January 31, 2013.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the House on January 31, 2013.
    • Referred to the House Insurance Committee on January 31, 2013.
      • Reported in the House on February 21, 2013, without amendment and with the recommendation that the bill pass..
  4. Passed 92 to 18 in the House on February 28, 2013, to convert Blue Cross Blue Shield into a “mutual insurance company” and make it subject to the same regulations as regular health insurers. Although it would remain a non-profit, current restrictions on the entity's ability to own for-profit subsidiaries would be reduced, and it would no longer be subject to close oversight by the state Attorney General. In return for being granted this conversion, BCBS would pay "up to" $1.56 billion over 18 years (meaning it could be less) into a fund that would supplement various health-related government programs, with specific spending items selected by a board of political appointees. The bill does not include abortion restrictions that caused Gov. Snyder to veto the same measure when passed late last year.
    Who Voted "Yes" and Who Voted "No"

  5. Signed by Gov. Rick Snyder on March 18, 2013.

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