MichiganRadio

Blue Cross/Blue Shield Rate Hike Opposed LANSING, MI (MPRN) -

Michigan Attorney General Mike Cox is objecting to a temporary rate increase for 400 thousand Blue Cross-Blue Shield customers. The customers buy their own coverage because they don't get group coverage through their employers.

Blue Cross wants an interim rate hike to cover its costs while its case for a permanent increase is decided by the state.

Cox says Blue Cross should tap its cash reserves before enacting an interim rate hike.

Andy Hetzel is a Blue Cross vice president. He says opposing the rate hike is good politics.

"But the bottom line is we have a very sound business case and that is that we lost 133 million dollars on individual lines of business last year, and the law of the state says our products need to be self-sustaining over time, so we're at the insurance bureau asking for rate increases because we need to," says Hetzel.

Hetzel says Blue Cross is losing money on individual policies because it cannot compete with for-profit companies. As a not-for-profit charity, Blue Cross has to accept all applicants. For-profit companies can turn away customers. © Copyright 2012, MPRN