Michigan Blue Cross Deal Freezes Medigap Rates
LANSING (AP) – Blue Cross Blue Shield of Michigan and Attorney General Bill Schuette say they’ve agreed to keep rates stable for seniors who buy supplemental health coverage from the insurer.
The deal announced Thursday affects so-called “Medigap” policies bought to supplement Medicare coverage. Schuette says the agreement freezes rates until August 2016.
It’s part of an agreement that allows Michigan Blue Cross and Philadelphia-based Independence Blue Cross to acquire a stake in AmeriHealth Mercy. The company has Medicaid managed-care contracts in states including Pennsylvania, Indiana, and South Carolina.
The joint venture could provide an opportunity for Blues insurers nationwide to expand into Medicaid coverage just as states are seeking ways to save money in the program and the ranks of Medicaid enrollees is poised to grow.
© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast rewritten or redistributed.