2013 Senate Bill 62 / Public Act 5

Convert Blue Cross to non-profit "regular" insurance company

Introduced in the Senate

Jan. 16, 2013

Introduced by Sen. Virgil Smith (D-4)

To convert Blue Cross Blue Shield into a “mutual insurance company” and make it subject to the same regulations as regular health insurers. Although it would remain a non-profit, current restrictions on the entity's ability to own for-profit subsidiaries would be reduced, and it would no longer be subject to close oversight by the state Attorney General. In return for being granted this conversion, BCBS would pay "up to" $1.56 billion over 18 years (meaning it could be less) into a fund that would supplement various health-related government programs, with specific spending items selected by a board of political appointees. The bill does not include abortion restrictions that caused Gov. Snyder to veto the same measure when passed late last year.

Referred to the Committee on Insurance

Jan. 30, 2013

Reported without amendment

With the recommendation that the bill pass.

Jan. 31, 2013

Amendment offered by Sen. Bruce Caswell (R-16)

To prohibit BCBS from cutting for three years the reimbursement rates it has agreed to pay to small hospitals.

The amendment failed 6 to 31 (details)

Passed in the Senate 37 to 0 (details)

Received in the House

Jan. 31, 2013

Referred to the Committee on Insurance

Feb. 21, 2013

Reported without amendment

Without amendment and with the recommendation that the bill pass..

Feb. 28, 2013

Passed in the House 92 to 18 (details)

To convert Blue Cross Blue Shield into a “mutual insurance company” and make it subject to the same regulations as regular health insurers. Although it would remain a non-profit, current restrictions on the entity's ability to own for-profit subsidiaries would be reduced, and it would no longer be subject to close oversight by the state Attorney General. In return for being granted this conversion, BCBS would pay "up to" $1.56 billion over 18 years (meaning it could be less) into a fund that would supplement various health-related government programs, with specific spending items selected by a board of political appointees. The bill does not include abortion restrictions that caused Gov. Snyder to veto the same measure when passed late last year.

Signed by Gov. Rick Snyder

March 18, 2013