Examination by National Expert Shows Blue Cross Blue Shield of Michigan's Social Mission Contributions Totaled at Least $391 Milli...(ing more than 28000 lower-income c...),Health

children

-- $5 million in charitable giving, including community health initiatives

and $1 million toward funding free health care clinics across the state

-- $17.2 million in knowledge dissemination and health care quality

programs affecting the state's population at large, rather than just

BCBSM subscribers

-- $133.8 million in costs due to shortfalls in premiums for individual

products because of a regulatory and rate-setting structure unique to

BCBSM

-- $141.7 million in mandated subsidization of Medicare supplemental and

group conversion coverage

-- $10.8 million to support hospital charity care

-- $66.7 million to assist hospitals in covering "bad debt"

"The return to Michigan taxpayers during 2007 from Blue Cross Blue Shield of Michigan's total social mission spending was at least 488 percent or nearly five times more than its tax exemption," said Atlas. "The Blues spent $391 million in social mission activities versus only $80 million in forgone taxes."

BCBSM commissioned Avalere Health to conduct the examination in December 2007. The report follows up on prior examinations commissioned by BCBSM and conducted by Atlas in 2005 and 2006 through the Ann Arbor-based Altarum Institute.

"Mr. Atlas's examinations of BCBSM are long-standing and continuing, and we have full confidence both in the independence of his approach and his knowledge of the company's finances and statutory obligations," Hetzel said. "It is important to our board and management, and the state, that we regularly confirm that the company is fulfilling its social mission. Mr. Atlas's examinations are one way we do this."

For a copy of the Avalere Health report, go to http://www.bcbsm.com/pdf/value.pdf .

Blue Cross Blue Shield of Michigan is nonprofit and an indepe
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