The state’s largest health insurer will be able to play by the same rules as its competitors under legislation signed Monday by Governor Rick Snyder.
Governor Snyder got a standing ovation at Blue Cross headquarters in Detroit after signing the bills. Discussions about overhauling the company have been going on for years.
Snyder says the changes are long overdue.
“The last major change to the legislation involving Blue Cross goes back to 1980," says Snyder. "Just as a general rule, looking every 30, 40 years to update is probably a good idea!"
Besides leveling the playing field with other health insurers, the bill also ends Blue Cross’ tax-exempt status.
Opponents of the measure say seniors will lose access to a supplemental plan that covers out-of-pocket expenses Medicare does not.
Blue Cross’ board still has to approve the overhaul.