“BCBSM’s surplus has more than doubled in value from 2001 to 2006, increasing from $1.3 billion to $2.8 billion.”
Becoming a “for profit” enterprise has been a recent goal of Blue Cross Blue Shield of Michigan, through it’s lobbying efforts to adjust it’s charter with the state. Apparently it OWNs the accident fund, but is prohibited by state law to use subscriber funds in the operation of or funding of the accident fund.
I had written in the past wondering aloud why BCBS of MI would spend a great amount of resources lobbying for changes in the way it does business in the state of Michigan. I think we have found a compelling point. Attorney General Mike Cox said his investigation showed that BCBSM transferred $125 million to the Accident Fund in November, 2007. The Accident Fund purchased CompWest Insurance Co. of California for $127 million in November, 2007. Cox is Suing BCBSM to have $125M returned.. OOOOHHHH BOY!
Transferred, Gave, GIFTED. So that the Accident fund could grow? Blue Cross Blue Shield OWNS the accident fund, but the accident fund is a for profit, and the regulatory nature of how IT manages its finances not as clearly defined as those of BCBSM. Follow the money. WHO gets what? What rewards do the board members of the accident fund receive in such a coup of free NP dollars?
Oh …did I mention BCBSM has reserves of $2,800,000,000.00? I know it is good to have strong ability to pay the bills, but at some point in the interest of the charter which they operate under as Monopoly sanctioned by government, should they lower rates? I guess another major question is whether they will have to refund to the subscribers a significant amount of that when they succeed in bribing the legislative and executive bodies of Michigan to allow the change in status they seek?
Sadly, I have been wondering why my rates continue to rise. I wish I knew more about this stuff.. Blue Cross probably doesn’t wish that however…