LANSING – Chair of the joint House-Senate committee working to address individual market reform, State Representative Marc Corriveau (D-Northville), has released a draft of a compromise that seeks to protect access to affordable health care for Michigan residents in the individual health care market to House Speaker Andy Dillon (D-Redford Township) and other committee members.
"I would like to thank everyone who has been involved in these important market reforms for their hard work over the last 13 months," Dillon said. "I am pleased that the Legislature is working to incorporate changes from interested parties and both sides of the aisle into the current draft of the legislation, and that the Chair has worked to resolve the concerns that some had expressed about the original plan. There is still work to be done, but I have encouraged the committee to work toward a final solution."
Due to current economic circumstances and the existing regulatory framework that threatens Blue Cross Blue Shield's ability to maintain its status as the insurer of last resort, the Legislature has stepped in to address the urgency of instability within the individual health insurance market and the steadily increasing number of consumers seeking individual insurance coverage.
"The resolution of the complex issues involved in the individual health insurance market is moving forward," said State Representative Dick Ball (R-Bennington Township), who is a member of the joint committee. "My intent is to help craft a plan that will provide quality health care coverage in an efficient and cost-effective manner while assuring a level playing field for fair competition among the insurance plan providers."
Included in the draft are important consumer protections that:
Sets the pre-existing condition clause at 6 months for all carriers. Current law allows commercial carriers to have a 12-month pre-existing condition clause.
Prohibits insurance companies from drastically increasing rates upon renewal.
Maintains oversight by the Attorney General's Office.
Drastically reduces insurance companies' ability to raise rates on seniors.
Ends gender discrimination against women when determining health care rates.
"With the nation's current financial crisis and the struggles of the auto industry, Michigan faces more challenges than ever," Corriveau said. "Democratic and Republican members of the committee from both the House and the Senate have joined with consumer groups and interested parties in a transparent and thorough discussion concerning the problems in the individual health insurance market. This draft represents legislation that protects consumers and works to ensure the market's ability to provide health care to Michigan residents in the most affordable and accessible manner possible. This is a great start to making sure we are protecting our residents."
Both House and Senate members are continuing negotiations toward reaching a final solution.