Governor Rick Snyder signs bill making Blue Cross Blue Shield a nonprofit

Blue Cross Blue Shield will become a nonprofit under a new law signed today by Governor Snyder

At a meeting of the Blue Cross Blue Shield's board of directors, Governor Rick Snyder signed a bill making the insurer into a nonprofit and ending its tax-exempt status.

The plan includes the company paying $1.6 billion worth of investments over the next 18 years to the Michigan Health Endowment Fund to promote the overall health and wellbeing of Michigan residents.

The legislation also guarantees $120 million from 2016 until 2021 to subsidize payments for Medigap coverage.

"Reforming the state's largest health insurance provider is essential e establishing the health care marketplace of the future," Governor Snyder said. "Improving the health and wellness of all Michiganders is a major focus, and these changes ensure that quality health care will remain affordable and accessible."

Critics of the bill say that subsidies for their supplemental Medicare policies will eventually end, making like more difficult for senior citizens.