Senate OKs Blue Cross Blue Shield Overhaul - WLNS TV 6 Lansing - Jackson | Your Local News Leader

Senate OKs Blue Cross Blue Shield Overhaul

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LANSING, Mich. (AP) - The state Senate has again approved a proposal to end Blue Cross Blue Shield of Michigan's tax-exempt status and transform it from a charitable trust to a customer-owned nonprofit.

The bills unanimously OK'd Thursday don't include abortion provisions that led Governor Rick Snyder to veto one of his top priorities in December. He opposed the last-minute addition of language that would have barred insurers and businesses from covering elective abortions.

Michigan's largest health insurer would no longer have immunity from paying taxes in exchange for providing insurance coverage regardless of a customer's health status.

Supporters say the proposal modernizes the insurer and allows it to be taxed and regulated as its competitors. Critics say the measure hurts the elderly and reduces oversight of a company controlling much of the market.

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