In Brief: New Michigan Blues Bill Introduced; Indiana Unsure On Medicaid Expansion
New Michigan Blues Reform Bill Introduced
The financial remaking of Blue Cross Blue Shield of Michigan has begun anew, with bills introduced into the state's Legislature that does not contain language that led to its veto late last year.
Michigan Gov. Rick Snyder vetoed that bill, SB 1293, on Dec. 28, insisting that the insertion of language that would have exempted the insurer from covering abortions without additional premiums was too heavy-handed.
Aside from that language, the bill would have lifted a tax exemption for the state's largest insurer – translating to about $100 million in annual tax revenues – as it changed its status from a charitable organization to a mutual benefit insurance company. It would have also required the Michigan Blues to spend about $1.6 billion to endow a fund intended to improve the health of the state's residents. In exchange, the Blues would have been free of extra layers of regulatory scrutiny regarding premium rates other insurers in the state do not have to undergo.
The two recently introduced bills, SB 61 and SB 62, contain all the financial provisions of SB 1293, but does not contain a clause requiring that abortion coverage be elective.
A spokesperson with the Michigan Blues said it is hoped the bill would be put into a final shape during the first quarter of this year.
Indiana Unsure On Medicaid Expansion
Democratic lawmakers have called on Indiana Gov. Mike Pence to expand the state's Medicaid program under the aegis of the Patient Protection and Affordable Care Act.
Pence, a Republican, did not include any state funding for the expansion of Medicaid when he introduced his proposed budget last week.
Like several other GOP governors, he has expressed objections to the healthcare reform law, although a handful have agreed to expand their Medicaid programs anyway.
Under the ACA, the federal government would fund the expansion of Medicaid 100% for the first several years, and then 90% thereafter.
In Indiana, about 300,000 residents would be eligible for Medicaid coverage if the income eligibility guidelines are loosened under the ACA and raised to 138% of the Federal Poverty Level.
“With the Affordable Care Act, Indiana has a great opportunity to increase access and the quality of affordable health care for many thousands of Hoosiers across our state,” said Sen. Jean Breaux, an Indianapolis Democrat. “The Affordable Care Act also affords Indiana a means to drive down healthcare costs and improve the economy. Yet to our dismay, there have been no legislative discussions, no public dialogue, on the establishment of our state’s program or its implementation.”
Although Pence did not budget any money for Medicaid expansion, he suggested that the Legislature could make a final decision as to whether to join the program.
According to data from the Kaiser Family Foundation, it would cost Indiana $60 million to $80 million a year to fund the Medicaid expansion, while it would receive as much as $8 billion in federal funding.
