More Proof That Blue Cross of Michigan Should be For-Profit
Blue Cross Blue Shield is a non-profit health care insurance company organized under the laws of the state of Michigan. Quite frankly, it’s hemorrhaging money. This has a lot to do with the fact that its policy is not to turn anyone away, regardless of their health and the risk in insuring them. So unsurprisingly, they’ve had trouble competing with other insurance companies who are more discriminatory in who they cover. Lately, they’ve attempted to raise fees in various areas to stop the bleeding. But Michigan Attorney General Mike Cox, who is vested with jurisdiction over every non-profit organized under the laws of Michigan, will have none of it. Cox suspects Blue is trying to make a profit in violation of its bylaws, and he has used the opportunity to grandstand for publicity arguing he’s protecting “vulnerable seniors” in the name of “consumer protection.” Note the fact that Cox boasts of having the support of both the UAW and AARP in fighting proposed rate increases by Blue.
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2 Responses to “More Proof That Blue Cross of Michigan Should be For-Profit”
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BLUE CROSS OF MICHIGAN HAS TO TAKE EVERYONE BY LAW. THEY CANNOT TURN ANYONE AWAY. HOW CAN YOU WRITE A BLOG ABOUT SOMETHING YOU SEEM TO KNOW NOTHING ABOUT?
You’re absolutely right, they have to take everyone by law, and that is a perfect example of the tragedy of the commons. Because they can’t discriminate in who they insure, and since everyone is entitled to use them (even if it is for some fee, which is not one that reasonably approximates the cost of covering higher risk patients), these costs are drowning Blue Cross. So to fight any proposed rate increases puts the insurer between a rock and a hard place, and ultimately someone else (who can pay) has the costs passed on to them on behalf of all of those seniors.