Michigan Senate passes bill that would expand, reduce cost of private health insurance

The Michigan Senate on Thursday voted 23-13 to approve compromise legislation that would expand access to individual health insurance policies and make them more affordable, the Detroit News reports.

One provision in the legislation would mandate that the state maintain oversight of Blue Cross Blue Shield of Michigan rate increases. As the state's "insurer of last resort," BCBS is required to accept all customers, even those with pre-existing conditions, according to the News. The legislation also would reduce the waiting period for people with pre-existing conditions from 12 months to six months. Another provision would give the state the power to order refunds for policyholders the state deems were overcharged.

The legislation does not include a provision in the state House's version of the bill that called for creating a high-risk pool and requiring contributions from insurers and BCBS. The pool would be administered by BCBS, according to the House bill. The Senate measure instead would require the state to conduct a study within the next year to see if the pool is necessary and how it would affect insurance rates (Rogers, Detroit News, 5/2). The House passed its legislation in October 2007.

The House can approve the Senate legislation without changes or bring it to a conference committee to settle the differences between the two chambers. The "legislative fight" this session "centers on what are the best ways to expand individuals' access to singular policies, which now cover about 322,000" Michigan residents, according to the Detroit Free Press (Anstett, Detroit Free Press, 5/2).