Indepentant Health

Previous "reform" legislation sponsored by BCBS drove all but a small number of indepentant health providers from Michigan in the 1990s. This led directly to its massive 70 percent market share, nearly double all other BCBS licensees nationally. These bills are part of a continuing effort to eliminate their competition. Simmer asserts that capping insurance company profits is a laudable goal, requiring insurers to pay out a minimum of 70 percent of premium collected (gross revenue).

Insurance companies are not faultless entities in this argument, but it's a dangerous precedent for government to establish what an "acceptable" gross profit should be for any tax-paying enterprise. Market competition has a more positive influence on rates than government mandates. Should the state be responsible for insurers that don't make a net profit, and be required to reimburse them from tax revenue? It could happen.

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