LANSING - Attorney General Mike Cox, along with representatives of AARP and the Area Agencies on Aging Association of Michigan, today called on the Michigan Senate to adopt health care reform legislation that addresses four major issues:

            1.  Keeps health care rates affordable;

            2.  Maintains oversight;

            3.  Protects the most vulnerable population; and

            4.  Expands health care coverage for those who are uninsured.

            Cox was joined by AARP's Associate State Director for Government Relations, Felicia Wasson, and the Executive Director of the Area Agencies on Aging for the Kalamazoo region, Judy Sivak.

            Cox supports many of the principles contained in Dr. Tom George's (R-Kalamazoo) health care reform bills, aimed at maintaining Michigan's status as the 4^th most affordable state for individual health care rates in the country. Dr. George's bills continue state government oversight of rate hike requests, add transparency, protect Michigan's most vulnerable and provide for the expansion of health care coverage.

            "Dr. George's bills help consumers," Cox said. "Sen. Allen's bills are a Trojan horse for the House-passed Blue Cross bills that clearly put profits over people. The Blues would maintain their tax exemption, while abandoning their requirement to be the insurer of last resort. How does that fit with the Blues' mission as a charitable and benevolent institution?"

            Cox said a substitute package of bills by Senator Jason Allen (R-Traverse City) would create redlining, hollow out state government oversight on health care rates, allow Blue Cross to raise its rates by up to 100% over four years, and enable Blue Cross to keep their $75-$100 million tax exemption while shedding its social mission as insurer of last resort.

            Cox pointed out that under the Allen bills, Blue Cross can − for the first time ever − charge ratepayers more based just on where they live, regardless of how healthy they may be.

            "AARP believes that any attempt to reform the Individual Health Care Market should have safeguards in place to ensure that those who are in need of access to adequate health care coverage are not priced out of the option," Felicia Wasson, Associate State Director for Government Affairs, said. "Additionally, mechanisms that ensure oversight and transparency are paramount. Blue Cross has historically been the state's insurer of last resort and we all benefit if they remain as such. Senator George's substitute bills offer the most reasonable compromise to a package of bills that would be nearly catastrophic for Michigan consumers."

            According to Mary Ablan, Director of the Area Agencies on Aging Association of Michigan, "AAAAM supports Senator George's versions of HB 5282 and HB 5283 over the others because they will help keep health insurance more affordable for seniors and baby boomers, especially those with health conditions.  The George bills maintain strong government oversight over Blue Cross and a community rating approach that spreads the risk over the broadest population." 

            Cox noted that April 27 through May 3 is national "Cover the Uninsured Week."

            Dr. George's legislation places limits on the amount of surplus Blue Cross can accumulate that, if enacted today, would provide more than $307 million to help provide coverage for Michigan's uninsured.

            "The Michigan Senate has two alternatives," Cox said. "Dr. George's bills will keep health care rates more affordable and provide help to the uninsured. Sen. Allen's bills will have adverse consequences for Michigan's older and sicker population. It's a clear choice."

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