LANSING -- Michigan Attorney General Bill Schuette testified today before the House Insurance Committee, urging support to protect current and future Blue Cross assets for taxpayers as well as stronger protections for seniors in the proposed conversion of Blue Cross.
Senate Bills 1293 and 1294 would permit the conversion of Blue Cross Blue Shield of Michigan from a charitable health care corporation to a non-profit mutual insurance company.
"As we consider proposals to chance how Blue Cross is structured in Michigan, we must do all we can to ensure Michigan Seniors don't get shafted in the process," Schuette said.
Schuette warned of a "senior cliff" which would "Cause skyrocketing Medigap rate increases" for senior citizens.
"That is unacceptable. I am confident all parties involved want to fix this problem." Schuette said.
According to a press release from Schuette's office, more than 200,000 Michigan seniors currently rely on Blue Cross' Medigap coverage. As a result of a historic agreement with the Attorney General, those Medigap rates were frozen for five years. However, Schuette says once that agreement expires in August 2016, the seniors could face what is being called a "senior cliff", an immediate, 66 percent rate increase for most seniors.
The proposed $15 million annual allocation by a newly formed foundation would be insufficient o replace the $180 million that is currently allotted, Schuette said.
"This legislation is moving in the right direction, but broader, more long-term protections for Michigan's most vulnerable are still required," Schuette said.
