FOR IMMEDIATE RELEASE
November 23, 2009
Contact: Jason Moon 517-335-1700

LANSING – The Office of Financial and Insurance Regulation (OFIR) heard from a wide-variety of consumers and members of the insurance industry at a public hearing today in Lansing. The hearing was held to receive public comments on whether or not to approve the application of Blue Care Network (BCN) to purchase Physicians Health Plan of Mid-Michigan-Family Care (PHP).

“Comments from the public and interested parties may be submitted through this Wednesday,” OFIR Commissioner Ken Ross said. “These comments will be factored into my final decision on this transaction.”

OFIR’s thorough review will include a survey of health carriers and health care agents to gain a more complete understanding of the level of competition in the statewide and regional health care market.

Under MCL 500.1315, the Commissioner must approve the application of BCN proposing acquisition and control of PHP unless the Commissioner determines, on the basis of information submitted, that the acquisition would result in one or more conditions found in MCL 500.1315.  

The conditions listed in MCL 500.1315 include whether the acquisition may jeopardize the financial stability of the insurer, prejudice the interests of policyholders or securityholders, lessen competition, create a monopoly, include terms unfair or unreasonable to policyholders and not in the public interest, or result in unqualified management.

The Commissioner will accept written comments submitted electronically to Cheryl Hall at hallc5@michigan.gov until 5 p.m. on November 25, 2009. Any objections to the proposed acquisitions should reference an authorized reason for disapproval specified in MCL 500.1315.   

For more details on the proposed transaction, visit: http://www.michigan.gov/documents/dleg/BCN_PHP_PubHear_11-3_299567_7.pdf

###