LANSING – Legislation that would guarantee health care access to all Michigan residents by preventing insurers from cherry-picking consumers and rejecting those with pre-existing health conditions was announced Monday by House Democrats.

Senate Republicans, who have held task force meetings on the issue of health care, are scheduled to announce their own initiative on Thursday.

Under the House Democratic proposal, all health insurers would be required to cover people with pre-existing conditions and they would be banned from increasing rates if a person got sick. Insurers would also be prohibited from only covering the healthiest people, so in essence Blue Cross Blue Shield of Michigan would no longer be the only insurer of last resort under the bills.

In return, there would be a Michigan Catastrophic Protection Plan that all insurers would pay into based on the percentage of the market they cover. The catastrophic pool would then pay for claims that are more than $25,000. It would be similar to catastrophic claims for motor vehicle accidents that are paid for by the Michigan Catastrophic Claims Association, which is financed by providers of no-fault insurance coverage.

The Democratic plan also calls for expansion of the state’s MIChild program so that every child in Michigan has health care coverage. The plan is paid for by assessing non-profit insurers, namely the Blues, on the value of their tax exemption. Rep. Marc Corriveau (D-Northville) said Blue Cross’ value alone is $100 million annually.

Corriveau, who fought and lost a legislative battle over individual insurance market reform last term, said his focus this year was to provide a more comprehensive solution that addressed the needs not only of individuals, but of small businesses and other entities that are also struggling with the rising cost of health care.

Reaction to the proposal was tepid as most are waiting to see details of the bills once they are introduced.

“We’re pleased to see the Legislature is taking action on health care reform for Michigan. We hope both the House and Senate proposals aim to comprehensively reform our broken health care system. Our support of any legislation will depend on its ability to strengthen regulations to protect consumers, create a fair and balanced health insurance system and broaden access to quality, affordable coverage,” said Blue Cross spokesperson Helen Stojic.

Sen. Tom George (R-Kalamazoo), who is leading the Senate’s health care efforts, said that chamber’s proposal will differ from the House’s, although he said details of his plan won’t be made public until a press conference on Thursday.

He said the Senate’s focus is on how to expand coverage to the uninsured, who are a growing portion of the state’s population as the economy continues to suffer.

John Sellek, spokesperson for Attorney General Mike Cox, who was ardently opposed to the individual health insurance bills last term, said they had not seen the new legislation on Monday.

But Sellek said, “Health care reform is a vital component of Michigan’s recovery, but as we learned last December, the devil is in the details. So, we look forward to learning more about this proposal because any changes must truly protect Michigan consumers.”

In a statement, Rick Murdock, executive director of the Michigan Association of Health Plans, said, “We welcome a vigorous and public debate on this issue. Once the House legislation is made available, we look forward to reviewing the package closely with our members and partners in the Put Michigan People First coalition. We look forward to working with both the House and the Senate to implement true health care reform.”

The legislation is expected to be introduced as early as Tuesday in the House.

This story was provided by Gongwer News Service. To subscribe, click on Gongwer.Com

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