3/18/13 - A local lawmakerâs legislation revamping Blue Cross Blue Shield of Michigan has been signed into law today by Gov. Snyder. The bill, introduced and shepherded through the legislature by State Senator Joe Hune, lets the state's largest health insurer transform into a customer-owned nonprofit and ends its tax-exempt status. The Hamburg Township Republican says the legislation will bring the Blues on a level regulatory playing field with other insurance companies in Michigan while ensuring they pay state and property taxes to the tune of around $100 (m) million per year, which they are exempt from paying today. Snyder signed the legislation today at a meeting of the company's board of directors in Detroit. Critics say the legislation will unleash Blue Cross, which already controls 70 percent of the stateâs health insurance market, from state oversight and free it to more easily raise rates by removing the ability of the state attorney general to request rate hearings. Others have said Blue Cross is using its lobbying money to influence the outcome. According to the Center for Responsive Politics, the Blues PAC has greatly increased its activity in the last 20 years, spending only about $155,000 in the 1990 election cycle, but about $1.2 million currently. More than 80 state legislators on both sides of the political aisle were the recipients of food and beverage services paid via Blues lobbying between 2009 and 2012. Senator Hune, who chairs the Senate Insurance Committee, received more than $2,300 of that money as well as $20,000 in campaign contributions from Blue Cross. But he has consistently denied the spending has anything to do with his support of the legislation. Snyder has said the change is necessary for Blue Cross to effectively deal with implementation of the federal Affordable Care Act, known as Obamacare, which requires all insurance companies to provide coverage to everyone without regard to pre-existing conditions. (JK)
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