health insurance

Blue Cross Blue Shield would undergo major changes under proposed legislation.
Wikipedia

LANSING, Mich. (AP) - Michigan Attorney General Bill Schuette says his office is reviewing Blue Cross Blue Shield of Michigan's plans for a joint venture involving a Medicaid coverage company.

The Detroit-based Blue Cross and Philadelphia-based Independence Blue Cross are purchasing AmeriHealth Mercy, which has Medicaid managed-care contracts in states including Pennsylvania, Indiana, and South Carolina.

Schuette said Friday he wants the Michigan-based Blue Cross to provide his office with documentation related to the transaction.

Blue Cross officials said they welcome the inquiry and will work with him to clarify questions about the transaction.

The joint venture could provide an opportunity for Blues insurers nationwide to expand into Medicaid coverage just as states are seeking ways to save money in the program and the ranks of Medicaid enrollees is poised to grow.

A new tax on all health insurance claims waits for approval from lawmakers in the state House. As Michigan Public Radio’s Laura Weber reports, the tax is essential to balance the budget for the coming fiscal year.

Lawmakers must approve the health insurance claims tax in order to replace the existing tax on Medicaid HMOs. The federal government is expected to rule later this year that the existing Medicaid tax is illegal. To continue to receive funds from the federal government to help pay for Medicaid the state must approve the new tax on insurance claims.

Some lawmakers on both sides of the aisle have said they do not like the new tax proposal – Republicans saying they will not vote for a new tax, and some Democrats arguing that it would disproportionately affect some seniors who had their pensions taxed earlier this year.

The House is expected to approve the tax changes when lawmakers return in a couple weeks.

Mark Coggins / Flickr

A new survey found the state of Michigan is not ready to implement the health care overhaul passed by Congress. The Affordable Health Care Act is supposed to go into effect in 2014.

Marianne Udow-Phillips  is the Director of the Center for Healthcare Research and Transformation. She says more people will be eligible for Medicaid under the new health care act and this might overwhelm an already strained health care system:

Steve Carmody / Michigan Radio

 Federal and state prosecutors are suing Blue Cross/Blue Shield of Michigan.

 The non-profit health insurance company is accused of violating anti-trust laws. 

When Blue Cross/Blue Shield of Michigan negotiates a contract with a hospital, it includes a provision giving it a discounted rate compared to other health insurance companies. 

Blue Cross insists that allows it to provide its members with discounted hospital stays.    But the US Justice Department and Michigan’s Attorney General’s office disagree.

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