SBs 1293 & 1294 received their first committee hearing this morning in the Senate Insurance committee. These bills come from the Governor’s Special Message on Health and Wellness in September 2011. This legislation would transition Blue Cross into a nonprofit mutual company, as is the case in 18 other states. If this legislation becomes law, the Blue Cross Blue Shield board would still have to approve the transition. If this transition were to happen, one of the results would be that Blue Cross would pay an estimated $100 million a year in additional tax revenue to state and local governments. This legislation also requires Blue Cross to contribute about $1.5 billion over 18 years to fund initiatives that improve health and increase access to health care for Michigan residents. The League testified in support of this legislation. Another hearing is expected next week.
Jason Mancini handles municipal services and can be reached at 517.908.0303 or by email at [email protected]