Health Care Law Blog
On Monday, March 25, 2013 the Department of Justice along with Blue Cross Blue Shield of Michigan ("BCBSM") jointly filed a motion to dismiss the case against BCBSM regarding their "most-favored nation" contracts. This lawsuit had been going on for 2.5 years and was scheduled for trial in October. Part of the reasoning for this lawsuit being dismissed is that the Insurance Commissioner on February 1, 2013 banned hospitals or insurers from enforcing most-favored nation agreements in insurance contracts unless they are approved by the Insurance Commissioner. Also, as of January 1, 2014 most-favored nation agreements are banned completely.
While many thought the Blue Cross Blue Shield of Michigan ("BCBSM") conversion bills would be signed into law at the end of 2012, it was not until March 18, 2013 that Governor Snyder signed the proposed legislation into law. The BCBSM conversion bills convert BCBSM from "a tax exempt charitable and benevolent institution" into a nonprofit mutual health insurance company. BCBSM has been operating as a tax-exempt nonprofit since Public Act 350 was signed into law in 1980. (This Public Act is referred to as the previous BCBSM statute.) The previous BCBSM statute made BCBSM Michigan’s “insurer of last resort,” requiring it to accept all customers regardless of their health.
On March 7 and 8, 2013, the members of Foster Swift’s Health Care Law Group attended the 19th Annual Health Law Institute. This two-day institute, which is co-sponsored by the Institute for Continuing Legal Education and the Health Care Law Section of the State Bar of Michigan, focused on recent legal developments in health care law. Specific topics addressed at this year’s Health Law Institute included:
Under the Patient Protection and Affordable Care Act, companies that provide drugs, medical devices, biologicals or other medical supplies covered by certain government programs (Medicare, Medicaid or the Children's Health Insurance Program) are required to annually report certain payments they make to physicians. According to a recently issued final rule, payment categories will include:
Michigan’s Right to Work legislation (“Legislation”) was signed into law by Governor Synder on December 12, 2012. The Legislation will become effective on the 91st day following the final adjournment of the 2012 regular session of the Michigan legislature (December 27, 2012). Unions are attempting to either renew or extend current collective bargaining agreements (“CBAs”) prior to the Legislation becoming effective, in an effort to avoid impact that the Legislation would have on union dues and participation.
