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Committee rejects committee amendments to strike Blue Cross governance and repeal health-share reporting
Summary
The House committee considered two amendments to the omnibus insurance bill H585: Representative Logan proposed removing governance and executive-compensation language for nonprofit hospital service corporations (including Blue Cross Blue Shield), and Representative North proposed deleting a reporting requirement for health-care sharing plans. Both committee straw polls were recorded 3–8 and the committee deemed both amendments unfavorable.
Members of the committee debated two committee amendments to H585, an omnibus insurance bill. Representative Logan asked the committee to delete sections 1 and 2, which would have removed statutory language that affects governance and executive compensation for nonprofit hospital service corporations (language that touches Blue Cross Blue Shield's board composition). Representative North proposed deleting section 10, which would remove a new reporting requirement for health-care sharing plans and arrangements.
Representative Logan argued the governance provisions "blur fiduciary duties" for private nonprofit boards and risk politicizing governance by allowing two governor appointees to sit on those boards. She warned that "it politicizes governance" and that the statute could create an expectation of public appointments on…
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