Senate's compromise bills for IMR

(Grand Rapids – May 2, 2008) - The Michigan Senate Health Policy Committee adopted two new substitute Individual Market Reform bills, HB 5282 (S-5) and 5283 (S-4), on May 1. The original bills were introduced by Blue Cross Blue Shield of Michigan in 2007 and passed by the House of Representatives in October with very little discussion.

The revised bills approved by the Senate now go back to the House of Representatives for a vote that is expected to happen in May.

Priority Health supports these revised bills as good compromise legislation. They exclude a high-risk pool for the uninsured, which we oppose. Such a pool would raise premium rates for everyone by forcing all insurers to subsidize losses created by Blue Cross Blue Shield of Michigan.


Update May 15, 2008: Judge rules against Blue Cross rate hikes
Judge David Lick has ruled on rate hikes requested by Blue Cross Blue Shield of Michigan, finding that:

• Blue Cross should use its earnings and surplus to help expand access to health care to the 1 in 4 people in Michigan who are uninsured or have Medicaid insurance
• Arguments that Blue Cross administrative costs are too high are not persuasive
• Blue Cross should not assess a 1% charge to individual customers to subsidize supplemental Medicare and group conversion policies for people who once had workplace coverage

Read "Judge rules against Blue Cross on rate hikes" article in the Detroit Free Press, May 15, 2008


Read more about Individual Market Reform:

• New IMR bills are right for Michigan (466KB PDF)
• Ask Representatives to support the Senate's bills
  
• Read "Good Rx for reform" article in Grand Rapids Press, May 13, 2008
• Senate OKs alternate insurance reforms – article in Business Review, May 2, 2008
• State Senate approves bills aiding health insurance access – article in Detroit Free Press, May 2, 2008