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Coalition For A Fair & Competitive Insurance Market Says Senate Should Reject the Blues Attempt to Expand Their Unfair Advantage
Date:4/16/2008

Coalition Plans To Testify H.B. 5284 & H.B. 5285 Enables BCBSM to expand

its Monopoly rather than Lower Rates

LANSING, Mich., April 16 /PRNewswire/ -- The Blue Cross and Accident Fund Expansion bills enable the Blues to expand their unfair advantage into a monopoly rather than benefiting consumers by lowering rates, according to the Coalition For A Fair & Competitive Insurance Market. The Coalition represents a group of Michigan based, tax-paying insurance companies that employ more than 7,000 Michigan residents.

(Photo: http://www.newscom.com/cgi-bin/prnh/20080416/CLW104 )

The Senate Health Policy Committee has scheduled a hearing today on the Blue Cross Blue Shield Michigan (BCBSM) "Reform Plan" and is expected to focus on the Accident Fund Expansion Bills (House Bill 5284 & House Bill 5285). The bills, which have nothing to do with Individual Market Reform, would allow Blue Cross to acquire any other company. The legislation would also allow the Accident Fund, a for-profit workers' compensation subsidiary of BCBS, to expand from workers compensation insurance into other insurance lines such as home and auto insurance and even medical malpractice insurance.

The Senate committee is expected to consider committee chair Sen. Tom George's substitute for H.B. 5284. In return for allowing the Accident Fund to expand into other insurance lines, the substitute proposed by Sen. George would require the Blues to pay $100 million into a charitable fund that would provide subsidies to people who buy individual health insurance.

Bills Do Not Benefit Michigan Consumers: No Premium Reductions

The Coalition released a study conducted by Hillsdale Policy Group economist Gary Wolfram, Ph.D. that shows the Blue Cross Blue Shield-backed legislation moves the Blues further away from its social mission while providing no benefits for Michi
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SOURCE Coalition For A Fair & Competitive Insurance Market
Copyright©2008 PR Newswire.
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