View this article online: https://www.insurancejournal.com/news/midwest/2012/11/26/271537.htm
A Republican state lawmaker says Blue Cross Blue Shield of Michigan should pay $500 for every Michigan resident as part of legislation that would convert the company from a charitable trust of the state to a customer-owned nonprofit .
Rep. Tom McMillin proposed that the state’s dominant insurer be required to transfer $5 billion to Michigan’s 10 million residents as payment for the conversion.
Blue Cross says the conversion would help it better compete under the 2010 Affordable Care Act.
Under legislation sought by Gov. Rick Snyder, Blue Cross has promised to transfer $1.5 billion to a new health foundation organization over 18 years.
McMillin tells The Detroit News he fears the proposed conversion is the first step toward Blue Cross being sold to a for-profit insurer.