2013 Senate Bill 61 / Public Act 4

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

Introduced in the Senate

Jan. 16, 2013

Introduced by Sen. Joe Hune (R-22)

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, as selected by a board of political appointees.

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. Virgil Smith (D-4)

To require that a union official be one of the members of the politically-appointed board that would decide where to spend the "up to" $1.56 billion over 18 years BCBS would be required to pay to supplement health-related government spending.

The amendment failed 10 to 26 (details)

Amendment offered by Sen. Mark Jansen (R-28)

To prohibit BCBS officers from being appointed to the board that would decide where to spend the "up to" $1.56 billion over 18 years that the entity would be required to pay to supplement health-related government spending.

The amendment passed by voice vote

Amendment offered by Sen. Jim Marleau (R-12)

To assert that the "up to" $1.56 billion over 18 years that BCBS would be required to pay to supplement government health-related spending should be on things that "improve health care quality" and reduce its cost.

The amendment passed by voice vote

Passed in the Senate 36 to 0 (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.

Received in the House

Jan. 31, 2013

Referred to the Committee on Insurance

Feb. 21, 2013

Reported without amendment

With the recommendation that the substitute (H-2) be adopted and that the bill then pass.

Feb. 27, 2013

Substitute offered

The substitute failed by voice vote

Substitute offered by Rep. Pete Lund (R-36)

To replace the previous version of the bill with one that revises details but does not change the substance as previously described.

The substitute passed by voice vote

Amendment offered by Rep. Sam Singh (D-69)

To require that if there are any unspent appropriations at the end of a fiscal year, up to $75 million of the money must be spent on subsidizing "Medigap" insurance policies for individuals age 65 and older.

The amendment failed by voice vote

Amendment offered by Rep. Andy Schor (D-68)

To clarify that Blue Cross Blue Sheild property will be subject to property tax starting in 2014.

The amendment passed by voice vote

Amendment offered by Rep. Kate Segal (D-62)

To clarify references to individuals eligible for Medicare.

The amendment passed by voice vote

Feb. 28, 2013

Amendment offered by Rep. Andy Schor (D-68)

To clarify that Blue Cross Blue Sheild property and that of any subsidiaries it owns or acquires will be subject to property tax starting in 2014.

The amendment passed by voice vote

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.

Received in the Senate

March 5, 2013

Passed in the Senate 36 to 0 (details)

Signed by Gov. Rick Snyder

March 18, 2013