Officials with Blue Cross and Blue Shield of Michigan are praising some aspects of a proposed state plan that would have the not-for-profit insurer paying state and local taxes and contributing to a statewide health foundation as part of a revamping of regulations.
Gov. Rick Snyder unveiled a proposal on Tuesday under which the Blues would agree to legally convert to a nonprofit mutual insurance company, which would place it under the same regulations that govern every other insurance company in the state. The plan would have to be approved by the state Legislature and the Blues' board of directors.
“Regulating every company the same makes sense,” said a statement from Daniel Loepp, president and CEO of the company, which is by far the state's largest insurer. “Our competitors complain that our tax-exempt status gives us an edge, and we say that our strict regulations give them an edge. The governor's proposal smoothes out those edges. It makes everyone play by the same rules.”