"Creating the Guaranteed Access Plan, preserving Blue Cross's mission, putting reforms in place to protect consumers from rate hikes and providing refunds for people if the insurance commissioner finds they have been overcharged, combine to give Michigan consumers one of the most secure insurance systems in the nation," Hetzel said.
The legislation preserves Blue Cross's current nonprofit mission to
cover everyone who applies and contribute to affordable health care in the
state -- but enhances that role by making BCBSM responsible for
administering the GAP and paying the lion's share of the cost:
-- BCBSM would pay all of the costs associated with the GAP for the first
-- After two years, BCBSM would continue to pay all the administrative
costs of the GAP in perpetuity. These costs typically total about 10
percent of the cost of claims.
-- After two years, BCBSM would pay out all of the premiums collected by
the GAP to cover GAP member claims, plus an additional 5 percent above
premiums collected. For GAP losses above 105 percent of premiums
collected, the state insurance commissioner would determine whether an
assessment of the insurance carriers in the individual market was
-- After two years, BCBSM would pay its share of any industry-wide
carrier assessment. The assessment would be applied to each insurer
based on their market share.
Blues Mission Preserved - Returning Multiples of Tax-Free Benefit to Michigan
In addition to creating the new Guaranteed Access Plan, the bills also
preserve Blue Cross's role under Public Act 350 of 1980 to contribute to
affordable, accessible health care for the people of Michigan. The Blues
released a report today, based on an independent examination of the
company's financial obligations
|SOURCE Blue Cross Blue Shield of Michigan|
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