LANSING – Bills overhauling Blue Cross Blue Shield of Michigan were passed Thursday by the House without language regarding abortion insurance coverage. The vote was 92-18 for both SB 61 and SB 62, which will now head to the Senate for a concurrence vote.

The bills would turn Blue Cross into a nonprofit mutual company, and are essentially the same as the legislation that was vetoed by Governor Rick Snyder late last year, except they do not include language that would have required the purchase of an optional rider by those seeking an abortion to be covered by their insurance. It was that language that prompted Snyder’s veto.

House Speaker Jase Bolger (R-Marshall) said in a statement an agreement could not be made on abortion language, but House Republicans added a focus on health care for adoptions and prenatal care through the fund created in the legislation. That fund would require Blue Cross to contribute $1.56 billion over up to 18 years toward state health care efforts.

“There is no agreement on language that would protect both women and their unborn babies, and because the House is keeping with its commitment to raise the value of life in this session through issues that unite us rather than divide us,” the chamber moved the bills, he said.

Attorney General Bill Schuette said in a statement he opposed the Blues legislation. He said Medigap rates will increase almost 66 percent in 2016 and new rates will not be subject to attorney general oversight. Under the new framework, the attorney general will no longer have a role in the rate-setting process.

“We need a full and complete commitment to seniors, one that protects them from the looming Senior Cliff, which could cause skyrocketing Medigap rate increases for Michigan’s most vulnerable,” Schuette said. “When the existing Medigap rate freeze ends in 2016, hundreds of thousands of Michigan seniors will either face higher rates or be left on their own to find new coverage if Blue Cross drops the Medigap plans. That is unacceptable, and as a result, I cannot support the legislation.”

Schuette said money allocated in the bill to subsidize payments for Medigap plans after 2016 is not sufficient. On Wednesday, Rep. Sam Singh (D-East Lansing) attempted to pass an amendment adding $75 million to the fund in 2016, but it was rejected after a voice vote.

House Minority Leader Tim Greimel (D-Auburn Hills) said in a statement revisions in the bills are required under the federal Patient Protection and Affordable Care Act, and the bills deserved support.

“Democrats are concerned, however, that the bills will phase out the subsidy that makes Medicare Supplemental Insurance, commonly known as Medigap coverage, more affordable,” Greimel said. “That will likely result in higher health care premiums for seniors. Democrats offered an amendment to address this problem, but Republicans refused to allow a vote on it. We are disappointed that Republicans have chosen to close the door to greater health care affordability for seniors.”

Bolger said the legislation is right for tax payers.

“The Blue Cross reforms are important to Michigan residents because they make the Blues compete with the same rules as other insurers, they’re important to taxpayers because they make the Blues pay taxes, and they’re important to seniors because they add Medigap assistance,” he said.

The bills were passed with an amendment from Rep. Andy Schor (D-Lansing) to correct an oversight that would have resulted in Blue Cross not paying property taxes on a number of its facilities throughout Michigan until 2015.

“I’m thrilled to have played a part in correcting an oversight that’s going to end up helping communities throughout the state,” Schor said. “This amendment couldn’t have passed without the bipartisan support it received. I enjoyed working with colleagues on both sides of the aisle to address this important issue and ensure that our communities would receive the property tax revenue they expected.”

Andy Hetzel, vice president of corporate communications for Blue Cross, said in a statement the bills will preserve the nonprofit mission of the Blues.

“The regulatory reforms at the foundation of this legislation are fair and address the priorities of a number of interests and organizations,” Hetzel said. “A lot of work went into these bills. The Legislature managed a thoughtful, deliberative and inclusive process. Blue Cross commends the governor, legislative leaders, the committee chairs and minority vice chairs in the House and Senate. Under our new structure, Blue Cross will contribute substantially to Michigan’s future.”

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