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Blue Cross Overhaul Makes Headway, Raises Concerns

Posted: 1:57 PM Nov 17, 2012
Reporter: Associated Press

LANSING, Mich. (AP) -- A proposal that would end Blue Cross Blue Shield of Michigan's tax-exempt status and transform the organization from a charitable trust to a customer-owned nonprofit is making headway in Lansing.

Yet that isn't stopping critics from trying to step in the path of the legislation to overhaul Michigan's largest health insurer.

Competitors and advocates for consumers and the elderly have attempted to change or stop the legislation that was proposed by Gov. Rick Snyder and enjoyed widespread support in the Michigan Senate. Now those for and against the legislation have trained their attention on the House as it continues hearings this coming week.

Wayne State University economics professor Allen Goodman says it's not surprising that any change to the state's largest health insurer "scares people a little bit."