Michigan House Passes Bill To Limit Insurance Rate Increases

Main Category: Health Insurance / Medical Insurance
Article Date: 29 Oct 2007 - 9:00 PDT

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The Michigan House on Wednesday voted 89-17 to approve bills that would limit how much for-profit health insurers could increase their rates during policy renewals, the Detroit News reports. The bills, introduced earlier this month, also would require health insurers to contribute to a pool administered by Blue Cross Blue Shield of Michigan that would cover the health expenses of individuals who cannot afford health insurance.

In addition, the legislation would enable the Accident Fund, the for-profit subsidiary of BCBS, to sell other types of insurance besides workers' compensation. BCBS said that the bills are needed to limit for-profit insurers from insuring only the healthiest individuals while leaving BCBS, the state's insurer of last resort, to provide coverage to the state's sickest residents. BCBS also said the bills would limit for-profit insurers' practice of drastically increasing premiums for members after they develop an illness.

Private insurers lobbied against the bills by forming the Coalition for Access and Affordability in Michigan. The coalition said that it objects to the legislation because it opposes the creation of a risk pool, and the bills would reduce state oversight of BCBS rate increases, according to spokesperson Denise DeCook. The bill now goes to a state Senate committee (Kosmetatos, Detroit News, 10/25).

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