3/5/13 - The Republican-led Michigan Senate gave final approval today to a plan sponsored by a local lawmaker that would transform Blue Cross Blue Shield of Michigan into a customer-owned nonprofit, sending the legislation to Gov. Rick Snyder's desk. Supporters, including Hamburg Township Republican State Senator Joe Hune, say the changes will improve competition by putting all insurance companies under the same set of rules. Opponents, including Republican Michigan Attorney General Bill Schuette, say the change could hurt seniors who rely on Medigap coverage. Under the legislation, starting in 2014 Blue Cross would shed its charitable "social mission" and contribute nearly $1.6 billion over 18 years to an endowment working to improve public well-being and health care access. The legislation will end Blue Cross' current tax-exempt status in exchange for providing insurance coverage regardless of a customer's health. If Snyder signs the legislation, the insurer will pay an estimated $1.8 billion in taxes to the state over the next 18 years. Senior groups and Schuette who oppose the bill say when a freeze on rates for Medigap coverage ends in 2016 seniors will face high costs or potentially lose coverage. But the legislation allows for $120 million subsidizing Medigap plans for seniors from mid-2016 through 2021. (JK)
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