May 21,  2009

           LANSING -  Attorney General Mike Cox today filed a petition for a rate hearing with the Office of Financial and Insurance Regulation (OFIR) for the purpose of opposing Blue Cross and Blue Shield of Michigan's (BCBSM) proposed 31% increase in its Medigap coverage for senior citizens.  Cox's ability to question the rate increase would have been eliminated under legislation stopped during legislative "lame duck" last year.  The same restrictions on consumer protection are included in the new version of those bills, recently introduced by Rep. Marc Corriveau.

        "This is all about revenues for Blue Cross, not health care for Michigan seniors," said Cox.  "If this new legislative package is passed, more than 200,000 Michigan seniors would be paying more for health care, automatically."

         Cox announced his opposition to both the rate increase and proposed elimination of consumer protections that empower the Attorney General to question proposed rate increases during remarks to the Area Agencies on Aging Association annual conference in East Lansing.  OFIR has 30 days from June 2 to begin the hearing process.

        Last year, Cox and a diverse collection of consumer advocate organizations, including AARP and the U.A.W., defeated an attempt by Blue Cross to force through a package of anti-consumer bills during lame duck.  Those bills, and the similar bills recently introduced by Rep. Corriveau, would allow BCBSM to enact this and other rate increases without a proper hearing on behalf of Michigan consumers.

        "Today's announcement demonstrates the importance of protecting the current law," continued Cox.  "Blue Cross should stop putting profits over people and focus on its mission as the insurer of last resort."   

         In January 2009, Cox released a 10 point plan for health care reform, which included an expedited rate hearing process aimed at assisting Blue Cross while also keeping consumer protections, but that proposal is not reflected in the new bills.  Cox added that he is hopeful the legislature will give due consideration to his proposals and include them in any final package of reforms. 

        In 2007, Cox opposed a BCBSM attempt to raise Medigap rates on Michigan seniors, resulting in seniors saving millions of dollars each year.   

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