DETROIT — Legislation that will improve residents’ access to quality health care by transforming Blue Cross Blue Shield of Michigan into a not-for-profit mutual company was signed today by Gov. Rick Snyder.
In addition to playing an important role in providing better access to health care, the plan includes a commitment by the company to contribute nearly $1.6 billion worth of investments over the next 18 years to the Michigan Health Endowment Fund to promote the overall health and well-being of all Michiganders.
“Reforming the state’s largest health insurance provider is essential to establishing the health care marketplace of the future,” Snyder said. “Improving the health and wellness of all Michiganders is a major focus, and these changes ensure that quality health care will remain affordable and accessible. I appreciate the Legislature’s quick work to approve this important reform that will benefit everyone in our state.”
The legislation also guarantees $120 million from 2016 until 2021 to subsidize payments for Medigap coverage.
The transformation requires approval by the BCBSM board of directors and the director of the Department of Insurance and Financial Services. In the future, should BCBSM be sold or change its corporate structure, it would be required to pay into the fund the greater amount of either the acquisition price or the company’s fair market value as of that time.
Senate Bill 61, sponsored by Sen. Joe Hune, and SB 62, sponsored by Sen. Virgil Smith, are now Public Acts 4 and 5 of 2013, respectively.
For more detailed information about legislation, visit www.michiganlegislature.org.