Regulators Weigh In On Rate Requests

Michigan Blue and the subscriber who challenged the original rate increase request can go to court to appeal the decision, officials say.

Michigan Blue has about 90,000 nongroup enrollees under age 65, and about 20,000 of those nongroup enrollees will be affected by the outcome of efforts to determine what the rate increase will be, Michigan Blue says.

The lawyer for the subscriber who challenged the original rate increase request argued that Michigan Blue’s reserves are excessive.

Michigan Blue notes that Ross did not agree with that argument.

“The decision supports Blue Cross’s argument that reserves remain well below the maximum cap set by the Michigan Legislature,” Helen Stojic, a Michigan Blue representative, says in a statement.

Stojic says Michigan Blue individual premiums are significantly lower than the individual insureds’ medical costs, because Michigan requires Michigan Blue to serve as an insurer of last resort while permitting for-profit health insurers to reject applicants who have health problems.

“This population of older, sicker Michigan residents is more costly for Blue Cross to insure, and leaves them subject to rate increases that are needed, but are higher because of this situation,” Stojic says.