Michigan politicians have adopted a “nothing to see here” attitude in explaining away their mishandling of the sale of Blue Cross Blue Shield of Michigan. But trust me, there is plenty to see — and fear.
If you are a BCBSM policyholder, the Senate-adopted plan denies you dividends in the new mutual company and strips you of almost all of your legal rights as a policyholder, including any right to any value policyholders contribute to the new company going forward. The bill is so favorable to management, and so hostile to policyholders, that it invites future abuse.
The bill fails to provide any limits on the creation of stock subsidiaries or the amount of business BCBSM Mutual could place in for-profit subsidiaries. This means despite being described as a mutual insurance company, BCBSM Mutual could immediately begin issuing stock and therefore create lucrative stock options for executives.
Read more here.