state laws at your finger tips
in concise, plain language
Legislation watch

2012 Senate Bill 1294: Repeal BCBS tax exemption; regulate like regular health insurer
Introduced by Sen. Joe Hune (R) on September 19, 2012 To convert Blue Cross Blue Shield into something that would be called a “nonprofit mutual insurance company,” make it subject to the same regulations as regular health insurers, and no longer exempt BCBS from state and local taxes. Under the federal “Patient Protection and Affordable Care Act” (aka “Obamacare”) the BCBS “social mission” of being the “insurer of last resort” which was the rationale for its special tax-exempt status no longer applies, since all insurance companies would be subject to similar "guaranteed issue" mandates.   Official Text and Analysis.
Referred to the Senate Insurance Committee on September 19, 2012
Reported in the Senate on October 17, 2012 With the recommendation that the substitute (S-2) be adopted and that the bill then pass.
Substitute offered in the Senate on October 17, 2012
The substitute passed by voice vote in the Senate on October 17, 2012
Amendment offered by Sen. John Gleason (D) on October 17, 2012
The amendment passed 21 to 16 in the Senate on October 17, 2012
Passed 33 to 4 in the Senate on October 17, 2012 To convert Blue Cross Blue Shield into a “nonprofit mutual insurance company” (technically "owned" by the policy holders), make it subject to the same regulations as regular health insurers, and no longer exempt BCBS from state and local taxes. The bill requires BCBS to spend $1.5 billion in accumulated reserves over 18 years to augment government health welfare program.
Received in the House on November 8, 2012
Referred to the House Insurance Committee on November 8, 2012
Reported in the House on December 5, 2012 With the recommendation that the substitute (H-3) be adopted and that the bill then pass.
Substitute offered in the House on December 6, 2012
The substitute failed by voice vote in the House on December 6, 2012
Substitute offered by Rep. Pete Lund (R) on December 6, 2012 To adopt a version of the bill that, along with Senate Bill 1293, requires BCBS to contribute more to "Medigap" insurance subsidies for seniors, and prohibits it from entering so-called "most favored nation" agreements with health care providers that allegedly requires providers to charge other insurance companies more for health care services than they charge BCBS (this was the subject of a U.S. Department of Justice anti-trust lawsuit).
The substitute passed by voice vote in the House on December 6, 2012
Amendment offered by Rep. Pete Lund (R) on December 6, 2012 To revise a detail related to "coordination of benefits" between health and auto insurers, or health and workers's compensation insurers.
The amendment passed by voice vote in the House on December 6, 2012
Passed 61 to 49 in the House on December 6, 2012 To convert Blue Cross Blue Shield into a “nonprofit mutual insurance company” (technically "owned" by the policy holders), make it subject to the same regulations as regular health insurers, and no longer exempt BCBS from state and local taxes.
Received in the Senate on December 6, 2012
Passed 28 to 10 in the Senate on December 6, 2012 To concur with the House-passed version of the bill.
Vetoed by Gov. Rick Snyder on January 10, 2013

Comments