Michigan Blues Plan’s Proposed acquisition

Blue Care Network’s (BCN’s) proposed acquisition of the major assets of Physicians Health Plan of Mid-Michigan (PHP) is facing criticism from the state attorney general’s (AG’s) office and others. Among the criticisms leveled at the proposed purchase are whether BCN’s reserves could have been used to staunch the $46. 8 million in losses reported during the first six months of 2009 by its parent company, Blue Cross and Blue Shield of Michigan (BCBSM). At least one newspaper and AG Mike Cox (R) have questioned whether the funds proposed for the purchase could have offset losses and kept BCBSM from requesting rate hikes of more than 30% for roughly 400,000 members. Cox says, “Blue Cross and its subsidiaries must explain how they can afford to buy another company even as they fight to raise rates on seniors. ” He adds until the plan can answer this, “I will remain skeptical” of the purchase. The AG’s office sent letters to state and federal regulators, requesting public hearings and asking the regulators to investigate the extent to which the purchase will reduce competition in the region. In the proposed deal, announced Sept. 15, BCN agreed to take on the membership and purchase nearly every asset belonging to Sparrow Health System’s HMO, PHP. Under the proposal, BCN will acquire PHP’s nearly 80,000 commercial members and 18,000 Medicaid HMO members. PHP posted net income of $3. 2 million on revenue of $175. 3 million for 2008. Neither company will disclose the financial terms of the agreement until they get final approval on the deal from the Michigan Office of Financial and Insurance Regulation (OFIR) and the Michigan Community Health Department. Cox Cites History of BCBSM PurchasesCox, a persistent critic of BCBSM, notes that the company and its subsidiaries have spent more than $350 million acquiring other companies since 2005. But during the same time, the Blues plan has reported millions of dollars in losses and asked for premium increases on multiple lines of health insurance. Cox adds that the company has a history of making loans and transfers to subsidiaries to make acquisitions and wants to know if such transactions are part of BCN’s deal with PHP. On Oct. 7, the AG’s office sent letters to the U. S. Department of Justice, the Federal Trade Commission and OFIR, according to spokesperson John Selleck. The letters, he explains, request that the agencies review whether the purchase will reduce competition in the Lansing, Mich. -area where PHP operates and whether the proposed purchase will affect “the overall surplus of BCN’s parent company. ” According to Selleck, reports we’ve seen indicate that if the purchase is completed, “Blue Cross would hold over 90% of the market in Ingham County. ” The letter to OFIR expressed both concerns, Selleck says, and asks for a public hearing on the acquisition, a request similar to the AG’s actions when BCN proposed its $240 million purchase of M-Care in 2007. Selleck says the AG’s office also is concerned about how BCN is paying for the purchase. “Our staff attorneys are concerned that though BCN said they [are buying PHP] on their own, the money is still from the parent company. ” He adds that BCN “said they paid $45 million cash and there are other conditions that haven’t been spelled out. We’d like to see how it affects the parent’s surplus. ” The office is worried about the effect of the purchase on BCBSM’s surplus since the experienced a loss in the first six months of 2009, according to Selleck. However, BCN reported net income in 2008 of $85. 6 million, according to the Lansing State Journal. BCN CEO Contends Its Reserves Are SeparateBCN CEO Jeanne Carlson wrote an op-ed article, published in that newspaper on Sept. 27, defending the proposed acquisition after an editorial criticized it. According to Carlson, the HMO “is making the purchase by moving investment dollars from its segregated reserve fund. These dollars are currently in other investments. Blue Care Network fully expects a solid return on investment from the PHP transaction through premium revenue and spreading of administrative costs. ” She adds that the editorial suggested that BCN “use its reserve dollars to fund losses incurred by Blue Cross’s individual and Medigap products. This is not permitted by law. The dollars are segregated for the benefit of Blue Care Network members. ”Dave Waymire, a spokesperson for the Michigan Association of Health Plans, fears the deal “will create an even more dominant monopoly in the Lansing region. ” Pointing to a report from advocacy group Health Care for America Now, he notes that BCBSM already had 65% of the overall Michigan market in 2007. BCN has the state’s largest HMO network of physicians and hospitals, including 4,300 primary care physicians and 116 hospitals — compared with PHP’s mid-Michigan network of 11 hospitals and 1,300 physicians. The Michigan Medical Society does not have a stance on the purchase yet, according to spokesperson Jessy Sielski. He says, “We want to keep a close eye on it when they’re considering approving the deal,” adding, “We’ll see what this means in terms of transitioning the network and find all the facts as they come available. ” And he says that many providers in PHP’s network also are in BCN’s network.

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Michigan Health Insurance Proves Costly Errs If Not Understood

Available in a variety of Michigan health insurance plans, selecting the right policy leaves many consumers baffled and quite often with unsuitable policies or none at all. Shoppers, looking for the most affordable monthly premium, usually end up with medical coverage, garnering too many out-of-pocket costs. An inflating unemployment deficit and uninsured setbacks, coupled with skyrocketing hospital bills continue to plague Michigan’s financially distressed citizens.

Almost fifty percent of Americans confess that they are unclear what their medical coverage includes or the difference between insurance terms, such as coinsurance, deductible, and co-payment. When it comes to selecting the right Michigan health insurance policy, the quandary is that insurance shoppers often don’t understand exclusions and out-of-pocket costs. The outcome is generally expensive, leaving many policyholders with unexpected hospital bills.

As a first time expectant mother, Wanda Jones, was excited about giving birth. However, the affordable premium health plan that she bought as a small business owner uncovered some unforeseen surprises. Ms. Jones thought that her $2000 deductible should cover the cost of her hospital bill, when she learned that it would be an additional $4000 for the delivery of her baby.

According to analysts, these medical coverage missteps happen all the time. As an expectant mother facing childbirth on her own, running a craft store in Ann Arbor, Michigan, the out-of-pocket deductible exceeded Ms. Jones savings account. She reports, “Since the jargon used in Michigan health insurance plans is so confusing. I never made time to understand the policy,” Had Ms. Jones asked the insurance agent to explain the policy she concludes, “I would have reconsidered single parenting.”

Mike Novelli, president of MichiganHealthandLife.com finds that unethical insurance brokers vend Michigan health insurance plans without disclosing all the details of the policies. Mr. Novelli recommends obtaining quotes from an insurance broker, who has an affiliation with a variety of Michigan health insurance plans. He also offers advice on avoiding unscrupulous brokers, “Shop for medical coverage from an ethical and experienced agent, who exudes the following qualities:

- Provides a comprehensive overview of each medical plan’s policies, defining low premiums with deductibles and coinsurance out-of-pocket costs.

- Never charges an application fee. (There is no cost to obtain a quote for Michigan health insurance).

- Provides helpful, professional advice and never uses aggressive tactics to persuade you to sign up for a policy.

For additional consumer information regarding medical coverage in Michigan, one of the best resources, featuring Michigan health insurance and free Michigan medical quotes is Michigan Health & Life.

The Greatest Wonders of Farmers Auto Insurance in Flint, Michigan

Often by the time they reach young adulthood or middle, individuals and families have located in an insurance company who have trusted for years. These companies, such as farmers auto insurance in Flint, Michigan, have shown an excellent record of customer service and less expensive premium rate. When people move from state to state, it often takes these preferences later. Drivers with car insurance farmers who lived before in Georgia, for example, would prefer to continue working with the same insurance company as to allow this company to provide insurance in the new state. , However, will likely need to find a new agent after you move. While many companies allow nearly all 50 states, some are not, and it is important to check and make sure that authorize the company you want to use in the state in which you reside. In addition, the company that you used before may or may not offer the best rates in Michigan. For this reason, do some comparison shopping before buying a policy. The comparison shopping can be quite time consuming if a person decides to call or visit several agents and request a quote. One of the best ways to do this quickly is to use a website that offers the ability to shop multiple agencies at once, for example WWW. sure. COM. This allows the user to get the best deal without spending a long time for that. Individuals who choose Farmers Insurance has the advantage of knowing that the insurance with this company is available in 46 states. Residents only Florida, South Carolina, West Virginia and New Jersey are not eligible to purchase policies with this company. In general, then, people can keep their insurance with this company to move easily from state to state. This is an advantage for policyholders. Moreover, the farmers auto insurance offers a strong online presence, which allows policyholders get quotes and make online payments above. It also allows individuals to add a car or a driver and make policy changes. The website provides contact information and lists answers to frequently asked questions. Farmers also offer many attractive discounts to holders of an insurance policy. Students who successfully complete Driver 's educational program receives rebates. No discounts demand, multi-car, and multiple policy discounts may also apply. With all these advantages, farmers auto insurance in Flint, Michigan, attracts a large customer base. A website that is navigated easily combined with customer service and claims management, this company has taken a sound decision in the insurance industry. So before you refill, compare their rates and determine whether farmers can cover their insurance needs unless you are paying now.