Health Insurance Reform Debate In Michigan
Monday Apr 28, 2008Health Insurance Reform Debate In Michigan in Politics and Legislation
There’s debate going on in Michigan over whether health
insurance reform is necessary — as more Michigan residents are losing
employer-sponsored coverage and forced to find plans on their own.
One state Senate committee is close to voting on a controversial reform bill, reported the Detroit News.
The proposal in question, introduced by state Senator Jason Allen and backed by Blue Cross Blue Shield of Michigan, would ultimately create a state-wide high-risk health insurance pool.
High-risk pools offer coverage for residents who can’t find health insurance because of pre-existing conditions or health status.
Michigan is one of more than a dozen U.S. states without a high-risk pool. Part of the reason there’s no pool is because BCBS of Michigan is the “insurer-of-last-resort” — required by state law to accept all applications.
This puts an unfair burden on the company, argues BCBS, and a high-risk pool will spread out the risk to all insurers. Under the bill, all health insurance companies in the state would be required to contribute to the pool.
State Attorney General Mike Cox is opposed to creating a high-risk pool. Cox contends that Senator Allen’s bill is unnecessary, and the state doesn’t need any kind of vast reform.
But advocates of the high-risk pool bill are standing firm — anxious for a broad overhaul of the system.
