House panel approves legislation to overhaul Blues

Published on NewsOK Modified: December 5, 2012 at 7:26 pm •  Published: December 5, 2012
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LANSING, Mich. (AP) — A House panel has approved a proposal to end Blue Cross Blue Shield of Michigan's tax-exempt status and transform it from a charitable trust to customer-owned nonprofit.

House Insurance Committee Chairman Pete Lund says a twice-postponed hearing Wednesday came after lawmakers ironed out most concerns with the legislation. The vote sends the bill to the House floor.

The legislation passed the Republican-controlled Senate in October.

Supporters say it modernizes the insurer and allows it to be taxed and regulated as its competitors. Critics counter it short-shrifts the elderly and reduces oversight of a company controlling 70 percent of the market.