Blue Cross Blue Shield of Michigan Ahead of Pack with Long-Standing Policy Regarding Insurance Rescissions

DETROIT, April 29 /PRNewswire/ -- Once again, Blue Cross Blue Shield of Michigan stands as a model for national health care reform – this time with its long-standing policy of not rescinding coverage, the much-maligned practice of dropping health insurance coverage when people become sick. Blue Cross Blue Shield of Michigan proudly stands with 38 other Blues plans across the nation as an insurer that does not rescind coverage except in cases of fraud or material misrepresentation.

"Blue Cross Blue Shield of Michigan believes in covering people, not rejecting people.  We believe in fulfilling the promise of health insurance when it's needed most," said Andrew Hetzel, BCBSM vice president for corporate communications.  "It has never been our policy to drop someone's coverage when they get sick, and we support the rest of the health insurance industry following suit."

For more than 70 years, BCBSM has been a guarantee-issue insurer with a mission to provide broad access to health coverage.  BCBSM is the only health insurance company in Michigan that guarantees access to coverage every day of the year; BCBSM also must submit its rates for regulatory approval prior to using them in the market.

BCBSM has been asking the Michigan Legislature for more than three years to increase consumer protections by ending the practice of rescissions, requiring all insurers to take everyone and leveling the playing field in regards to how rates are set.

"We are pleased to see the reforms we have championed here in Michigan take hold as a result of national health care reform," Hetzel said. "But there remains a need here in Michigan to bridge the gap between now and 2014, when comprehensive insurance reforms take effect."

Blue Cross is earning praise lately for its existing coverage policies.  Just last week, as Congress and the Obama Administration pressed health insurers to change their policies of dropping young adults under age 26 from their parents' health coverage upon graduation from college, BCBSM reiterated its longstanding policy of keeping college graduates – as well as young adults who turn 19 and choose not to attend college – active on their parents' fully insured plans. Self-funded plans – plans for which Blue Cross administers claims – will independently determine whether to adopt a similar approach.

Blue Cross Blue Shield of Michigan is a nonprofit corporation and an independent licensee of the Blue Cross and Blue Shield Association. For more company information, visit bcbsm.com.

SOURCE Blue Cross Blue Shield of Michigan