LANSING- The staff of the Office of Financial and Insurance Regulation (OFIR) has requested a hearing on Blue Cross Blue Shield of Michigan's (BCBSM) proposal to raise rates for its individual, group conversion and Medigap health plans. OFIR staff will examine whether BCBSM's proposed rates meet the requirements of Michiganlaw, which will include an examination of whether the rates are excessive and/or equitable.

OFIR staff, in addition to the Michigan Attorney General, requested an evidentiary hearing in the matter and will now be a party in the case. Under Michiganlaw, OFIR staff will act independently of OFIR Commissioner Ken Ross, who will make a final decision on the matter at the conclusion of the hearing.  

OFIR staff will seek additional information used by BCBSM in developing its proposed rates and will review any additional information produced by BCBSM in response to requests by other intervening parties. 

OFIR staff will also examine BCBSM's development and application of rate trends in arriving at its proposed rates and BCBSM's calculation and application of the cost transfer for the benefit of senior citizens in arriving at its proposed Medigap rates. 

BCBSM's requested average rate increases are 56 percent for individual plans, 42 percent for group conversion plans and 31 percent for Medigap plans and would affect over 400,000 Michiganconsumers. 

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