UAW Opposes Bills Touted By Blue Cross Blue Shield Of Michigan

Main Category: Health Insurance / Medical Insurance
Article Date: 11 Dec 2007 - 7:00 PDT

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The United Auto Workers on Thursday joined the Michigan chapter of AARP and the Consumer's Union in opposing four bills promoted by Blue Cross Blue Shield of Michigan that would alter rates for Michigan's individual health insurance market, the Detroit Free Press reports.

The bills would change how Blue Cross determines rates for about 130,000 people who purchase individual insurance policies. Under the legislation, Blue Cross would be able to delay from six months to 12 months the time it has to provide coverage for people with pre-existing medical conditions; eliminate challenges to proposed rate hikes by consumers and the state attorney general; and allow the Accident Fund, a for-profit Blue Cross subsidiary, to sell more than workers compensation insurance. According to Blue Cross, the changes are necessary to offset losses from individual policies.

UAW in a position paper sent to Michigan legislative leaders on Thursday said the measures "would be a backward step in achieving meaningful reform." According to the statement, "These bills construct a field that is more focused on the bottom line for insurers than a framework for comprehensive reform for the citizens of Michigan." The statement also said that the bills would allow "a radical expansion" of the insurer's authority, particularly into products in which Blue Cross has no expertise.

Opponents of the bills argue that a $2.8 billion reserve fund from Blue Cross subsidiaries should be used to pay for the losses. The state House on Oct. 24 passed the bills by large margins, and the state Senate Health Policy Committee on Wednesday is scheduled to discuss Michigan's individual health insurance market but will not discuss the bills until next year, according to committee Chair Tom George (R) (Anstett, Detroit Free Press, 12/7).

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