Monday marked a landmark change in Michigan’s insurance code, abolishing antiquated regulations and setting the stage for a fair and competitive health care marketplace for Michigan consumers. By signing Senate Bill 61 and 62 into law, Governor Snyder has started the process to enable the Blue Cross Blue Shield Michigan Board of Directors to begin the transition process to a nonprofit mutual insurer.
The transition process will include:
· Board approval on transition process steps, expected in the summer months
· Forming a new nonprofit mutual insurance company by filing articles of incorporation
· Submitting a plan of merger for regulatory approval
· Merging BCBSM into the new nonprofit mutual structure for an effective date of Jan. 1, 2014
The company will identify operational changes necessary to conform to Michigan Insurance Code regulations and implement process, policy and procedure changes over the course of 2013. The company will maintain ongoing communication with stakeholders to advise them of the impact of required changes.
BCBSM’s nonprofit status, member health care benefits, its physician and hospital networks, and the partnerships it has in place with medical providers to improve health care quality will not change due to its transition to a mutual company.