2003 Senate Bill 234 / Public Act 59

Introduced in the Senate

Feb. 27, 2003

Introduced by Sen. Beverly Hammerstrom (R-17)

To apply to Blue Cross Blue Shield the rate-setting procedures and guidelines proposed by <a href="http://www.michiganvotes.org/2003-SB-235">Senate Bill 235</a> for small group health insurance policies sold by commercial insurance companies. The bill also allows the insurer to require that at least 75 percent of a group’s members be included under a policy, or 100 percent of groups with six or less members. It would allow Blue Cross/Blue Shield to retain larger reserves. The legislation contains other revisions which affect Blue Cross/Blue Shield, and is part of a package comprised of Senate Bills 234 to 238. See also House Bills 4278 to 4282.

Referred to the Committee on Health Policy

May 13, 2003

Reported without amendment

With the recommendation that the substitute (S-2) be adopted and that the bill then pass.

May 28, 2003

Substitute offered

To replace the previous version of the bill with one recommended by the committee which reported it. The substitute incorporates many changes resulting from extensive negotiations between legislators and the various interest groups affected. See the Senate-passed version. The bill was amended to prohibit Blue Cross Blue Shield from reimbursing a health care provider in another state greater than the amount it would reimburse a Michigan provider for the same service.

The substitute passed by voice vote

Passed in the Senate 35 to 2 (details)

To apply to Blue Cross Blue Shield the rate-setting procedures and guidelines proposed by <a href="http://www.michiganvotes.org/2003-SB-460">Senate Bill 460</a> for small group health insurance policies. The bill also allows Blue Cross/Blue Shield to acquire companies that sell disability insurance, retain larger reserves, and exempts the company from certain utility taxes. It would also prohibit Blue Cross Blue Shield from reimbursing a health care provider in another state more than the amount it would reimburse a Michigan provider for the same service. The legislation contains other revisions which affect Blue Cross/Blue Shield, and is part of a package comprised of Senate Bills 234 to 238. See also House Bills 4278 to 4282.

Received in the House

June 4, 2003

June 5, 2003

Substitute offered by Rep. Stephen Ehardt (R-83)

To replace the previous version of the bill with the text of House Bill 4279, which has many of the same provisions as the Senate-passed version of this bill.

The substitute passed by voice vote

Amendment offered by Rep. William O'Neil (D-14)

To strike out certain obsolete language in the law authorizing Blue Cross Blue Shield as a nonprofit health care corporation.

The amendment passed by voice vote

Amendment offered by Rep. Stephen Ehardt (R-83)

To make a slight revision in a phase in date for certain new accounting requirements for Blue Cross Blue Shield.

The amendment passed by voice vote

Amendment offered by Rep. Barb Vander Veen (R-89)

To prohibit "cross marketing" by Blue Cross Blue Shield, in which advertising material for other services or products provided by the organization is included in bills. Note: Under the legislative package, BCBS will be able to offer new insurance products, including some sold by for-profit, non-tax exempt subsidiaries.

The amendment passed by voice vote

Passed in the House 104 to 0 (details)

To apply to Blue Cross Blue Shield the rate-setting procedures and guidelines proposed by <a href="http://www.michiganvotes.org/2003-SB-460">Senate Bill 460</a> for small group health insurance policies. The bill also allows Blue Cross/Blue Shield to acquire companies that sell disability insurance, retain larger reserves, and exempts the company from certain utility taxes. It would also prohibit Blue Cross Blue Shield from reimbursing a health care provider in another state more than the amount it would reimburse a Michigan provider for the same service. The legislation contains other revisions which affect Blue Cross/Blue Shield, and is part of a package comprised of Senate Bills 234 to 238, and 460. The House-passed version of the package generally grants more flexibility to for-profit, non-tax exempt private insurers relative to Blue Cross Blue Shield, which currently dominates the small group health insurance market.

Received in the Senate

June 11, 2003

Failed in the Senate 1 to 37 (details)

To concur with a House-passed version of the bill. The vote sends the bill to a House-Senate conference committee to work out the differences.

Received in the House

June 12, 2003

Received in the Senate

June 17, 2003

In the House

June 25, 2003

Passed in the House 78 to 30 (details)

To adopt a compromise version of the bill reported by a House-Senate conference committee. The committee version of the overall legislative package is similar to that passed by the Senate. Significantly, it would limit the discounts that a taxable, for-profit health insurance company could offer based on the (younger) age of an insured. Provisions in the House package requiring Blue Cross Blue Shield to only offer long term care insurance through a taxable for-profit subsidiary, and not directly, are included. See the House-passed version for more details of what issues are addressed in this particular bill.

In the Senate

June 25, 2003

Passed in the Senate 34 to 3 (details)

Signed by Gov. Jennifer Granholm

July 15, 2003