Michigan Senate Health Committee Chair Discusses Health Insurance Proposal

Main Category: Health Insurance / Medical Insurance
Article Date: 29 Apr 2008 - 8:00 PDT

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Michigan Senate Health Policy Committee Chair Tom George (R) on Thursday recommended that lawmakers take action on three provisions intended to manage Michigan's individual insurance market, including some proposed by Blue Cross Blue Shield of Michigan, the Detroit Free Press reports. About 322,000 state residents between ages 18 and 64 have individual policies -- "a growing number of whom are forced to buy their own insurance as they lose jobs or as employers drop workplace health benefits," according to the Free Press (Anstett, Detroit Free Press, 4/25).

BCBS estimates that the individual health insurance market could grow to 25% of all policies sold in the state in the next seven years. BCBS, the state's insurer of last resort, has recommended creating a high-risk insurance pool that would spread the risk of covering people with medical problems among other insurers (Anstett, Detroit Free Press, 4/24). BCBS claims the pool would limit for-profit companies from "cherry-picking" the healthiest patients and leaving it to cover the sickest residents.

Representatives from several consumer advocacy groups appeared before the state health committee on Wednesday and said a high-risk insurance pool would increase insurance premiums for the self-insured and make coverage unaffordable for those who need it most (Rogers, Detroit News, 4/24).

On Thursday, George said only policies that have the most support and will provide the greatest benefit to the consumer should be adopted. He said that the state should implement stronger protections for consumers purchasing coverage and that BCBS should be allowed to increase rates more easily, as commercial insurers are able to do. In addition, he recommended a three-year study to research the state individual insurance market.

State Senate Majority Leader Mike Bishop (D) on Thursday met with representatives of BCBS, private insurers and Michigan's HMO organization, Aetna, to "broker a compromise" over the various proposals. Representatives from BCBS and Aetna's Michigan division confirmed the meeting but declined to provide details of their discussion with Bishop (Detroit Free Press, 4/25).

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