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April 13

Blue Cross Questionable Activity

Posted by admin
Filed under Health Insurance | 2 Comments

Blue Cross of Michigan is enacting a number of changes which will impact the cost of health care as well as the profit of local health insurance agents. The insurance company is the state’s insurer of last resort, meaning that their tax-exempt status requires them to issue policies on everyone, regardless of medical history. This has resulted in the company holding policies for the sickest and costliest of the state’s citizens and has resulted in a loss of over $133 million in 2008. The company has announced that it will stop enrolling members in its older Value Blue Plans and has rolled out costlier plans as the only option. They are also lowering the commission structure so that agents will have little incentive to sell the plans. The opinion is that these actions were designed to slow the sale of these policies which have costed the company money instead of making them money. Also, there is criticism for the new practice of asking health history questions, which should not be required given that they are required to accept everyone regardless of medical history. What are your thoughts on the changes Blue Cross is making and the impact it will have on the market there and on the number of citizens without health insurance?

This entry was posted on Monday, April 13th, 2009 at 11:01 am and is filed under Health Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “Blue Cross Questionable Activity”

  1. Kirsten on April 13th, 2009 at 12:33 pm

    Makes sense to me. If they don’t want to offer the products anymore, just lower the commissions. Additionally, if they are guaranteed products then there should be no need for medical questions.

  2. Bud L on April 13th, 2009 at 2:47 pm

    Why do state legislators not get it? Are they grandstanding? What will they do when the letters come rolling in complaining that people can’t afford health insurance? It’s just insanity.

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