Michigan House OKs Blue Cross Blue Shield Overhaul

Feb 28, 2013

The Michigan House has approved legislation to transform Blue Cross Blue Shield of Michigan from a charitable trust into a customer-owned nonprofit.

Credit Blue Cross

The legislation passed Thursday to overhaul the state's largest health care insurer does not include the abortion provisions that caused Republican Governor Rick Snyder to veto the bill in January.

Republican House Speaker Jase Bolger says the changes are important because they will allow other insurance companies to better compete with Blue Cross and will make the company pay taxes to the state.

Attorney General Bill Schuette says the overhaul will hurt the more than 200,000 Michigan seniors who currently rely on Medigap coverage.

The Republican-led Senate approved the bills in late January. The bills will return to the Senate for approval of minor changes made in the House.