Font size:
A letter to The Detroit News challenges the opinion that Michigan’s model of relying on nonprofit insurance provider Blue Cross Blue Shield of Michigan is one for the country to replicate.
Under Blue Cross Blue Shield of Michigan’s control, competition and innovative cost-savings models are squashed. But Blue Cross and hospitals prosper while families, businesses and individuals suffer.
Blue Cross’ 2008 revenues were in excess of $21 billion. The nearest competing health care plan generated only $1.6 billion in revenue. Blue Cross has little competition in Michigan.
This is the case in many states that President Obama claims have insufficient competition – the top insurer’s status as a near-monopolist for health insurance in the state is largely thanks to government policies that make it easier for it to function at a lower cost than its competitors.
No wonder so many Americans are wary of a public option.
Get insightful commentary and the most reliable research on Michigan issues sent straight to your inbox.
The Mackinac Center for Public Policy is a nonprofit research and educational institute that advances the principles of free markets and limited government. Through our research and education programs, we challenge government overreach and advocate for a free-market approach to public policy that frees people to realize their potential and dreams.
Please consider contributing to our work to advance a freer and more prosperous state.
