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Blues Reap Big Savings by Axing Individual Plans 20131202-NEWS--0001-NAT-CCI-CD_-- 11/27/2013 1:43 PM Page 1 ® www.crainsdetroit.com Vol. 29, No. 49 DECEMBER 2 – 8, 2013 $2 a copy; $59 a year ©Entire contents copyright 2013 by Crain Communications Inc. All rights reserved Page 3 Blues reap big savings Sit back and read how Dow by axing individual plans gives Olympians a big push In 2012, for example, Blue Cross lost $90 million WIKIMEDIA COMMONS Obamacare is now in the individual market that covered 175,000 cus- Marjorie Fisher this year donated tomers. It projected individual market losses of $1 million to help the Brightmoor Retirement neighborhood. The grants are helping $78.2 million for this year, according to its 2012 fi- leverage additional funding. on hold; nancial report. GLENN TRIEST insurer of last resort knees need However, Blue Cross did not project losses in the BY JAY GREENE individual market from 2014 to 2017 in its 2012 financial report. invention CRAIN’S DETROIT BUSINESS Was that because Blue Cross A Fisher Blue Cross Blue Shield of Michigan shows a project- knew it would drop many of Survey of execs: State ed savings of tens of millions of dollars next year those money-losing individual needs Detroit to succeed by terminating 25 individual health plans that policies? were noncompliant with the Affordable Care Act. “The entire marketplace is transitioning. We left (projected Over the past decade, Blue Cross has lost hun- of hope individual losses) blank because dreds of millions of dollars in the individual mar- Inside we looked at a marketplace that ket as Michigan’s designated insurer of last resort, existed that doesn’t exist any- a moniker it no longer has under health care re- more” under the Affordable Hetzel Brightmoor aid Remember NITC? An update form with all insurers now required to cover peo- Care Act, or Obamacare, said Andy Hetzel, vice on new Detroit River bridge ple with pre-existing conditions and its conversion earlier this year into a mutual health insurer. See Blues, Page 19 boosts city plan BY SHERRI WELCH CRAIN’S DETROIT BUSINESS arjorie Fisher may live in Florida these LAST CALL FOR NOMINATIONS Shopping via video M days, but her heart is The deadline is nearing for still in Detroit, where she and nominations for Health Care her late husband, business Heroes. Winners will be chosen in five categories: Company adds to cart of mogul and philanthropist Max Ⅲ Corporate achievement in Fisher, raised their family. health care: Honors a company Though she makes grants to that has created an innovative online buying experience health benefits plan or solved a other efforts as problem in health care BY AMY HAIMERL well, Fisher is CRAIN’S DETROIT BUSINESS administration. partial to what Ⅲ Advancements in health Wolfgang Puck is standing in his kitchen. care: Honors an organization or she views as He’s showing viewers how to make potato pan- individual responsible for a one of Detroit’s discovery or developing a new cakes with smoked salmon, a dish he says procedure, device or service that “makes a great impression on your guests.” neediest neigh- can save lives or improve quality Intrigued, you want to make the dish. And, borhoods: hey, that commercial oven behind him looks of life. Brightmoor, on Ⅲ Physician: For exemplary pretty dazzling, so you’d love to know more performance. about it for when you’re playing “fantasy house the city’s Fisher Ⅲ Allied health: Honors an renovation.” northwest side. individual from the nursing or But it’s a video, so there’s no recipe, and defi- She fell in love with the allied health fields who is nitely no shopping info for the stove, right? deemed exemplary by patients Wrong. neighborhood and the people and peers. In a Clicktivated Video world, all of that infor- there around the same time Ⅲ Trustee: Honors leadership mation is right there in the video where users the Max M. & Marjorie S. Fish- and distinguished service on a can access it without leaving the viewing envi- health care board. ronment. Because it has the Clicktivated Video er Foundation began its focus Nominations, which are due logo, you know that it is an “activated” video there in 2008-09. Dec. 9, can be made at with clickable products. crainsdetroit.com/nominate. “These people in Bright- Viewers tap on an item, and a thumbnail ap- Statewide nominations moor are our neighbors, and accepted. Winners will be pears at the bottom of the video screen, showing announced in Crain’s Feb. 17 an e-commerce option — buying the stove, for ex- neighbors help neighbors,” issue. ample — or additional information, such as the she said. “It’s really impor- GLENN TRIEST recipe. Questions? Contact Bill Shea Joe Roebuck (left) and his son Chris (center) co-founded tant.” at [email protected] or (313) Birmingham-based Clicktivated Video. Chris’ cousin Ben See Fisher, Page 20 446-1626. Hatala (right) is a partner. See Clicktivated, Page 18 NOMINATE YOUR HEALTH CARE HERO TODAY crainsdetroit.com/nominate NEWSPAPER DEADLINE: DEC. 9 | STATEWIDE NOMINATIONS ACCEPTED 20131202-NEWS--0002-NAT-CCI-CD_-- 11/27/2013 11:41 AM Page 1 Page 2 CRAIN’S DETROIT BUSINESS December 2, 2013 MICHIGAN BRIEFS Minority lending practices snag clude the arrival of low-fare carri- er Southwest Airlines. Mercantile-Firstbank merger A year after right-to-work, W. Mich. unions soldier on Ⅲ Donate a toy or food to chari- Merger plans between Grand ty, and on Dec. 7 you can take your Rapids-based Mercantile Bank Corp. Nearly a year after Michigan passed right-to-work in luck: Recent studies show younger generations car for a lap around Michigan Inter- and Alma-based Firstbank Corp. legislation, parties on each side of the bargaining typically have favorable opinions of unions. national Speedway, The Associated may be held up because the Federal table say the law has had little impact on skilled While some skilled trade unions say they won’t be Press reports. The nonprofit arm Reserve Bank has questions about trades unions in West Michigan. affected, the same is not necessarily true of their of the racetrack, near the south Mercantile’s record of lending to While some predicted right-to-work laws would public-sector counterparts, particularly school- central Michigan community of minorities, MLive.com reported. sound a death knell for organized labor across the teachers, said Pat White, chairman of the labor and Brooklyn, is hosting its fifth annu- New York City-based Inner City state, the skilled trades — particularly those in the employment group at Grand Rapids-based Varnum al Charity Track and Toy Drive. Press/Fair Finance Watch has chal- building trades, such as plumbing and sheet-metal LLP. Teachers historically have felt secure about Ⅲ Construction crews have start- lenged the $151 million merger, al- construction — find themselves with plenty of work, their positions because state and local communities ed to put up plywood to protect leging Mercantile failed to meet union representatives and shop owners say. use tax dollars to fund schools, he said. nearby buildings before the mid-De- the requirements of the federal “Right-to-work isn’t going to be an issue for us,” Meanwhile, private-sector unions, out of self- cember demolition of 19-story Gene- Community Reinvestment Act by said Ryan Bennett, business agent for Local 174 of preservation, have begun to embrace the notion see Towers, Flint’s tallest building, denying credit to minority loan ap- the West Michigan Plumbers, Fitters and Service Trades, that they must make some concessions — more so MLive.com reports. New owner Up- plicants. The Fed said it will ex- based in Coopersville. than their public-sector counterparts — so that town Reinvestment plans to use the tend the time to review the merg- Many unions have turned their focus to new businesses remain viable and stay in Michigan, site for a hands-on outdoor science er, possibly delaying their Dec. 31 methods to recruit younger members as many cur- White said. museum with a xylophone, wind deadline for completing the deal. rent workers start to retire. And they just might be — MiBiz towers and sun dial. On Aug. 15, Mercantile and First- Ⅲ Monarch Community Bancorp, parent of Monarch Community Bank bank announced they planned to Dam and other dams downtown. It MLive.com reports that Paul Isley, too magnificent to calculate. in Coldwater, this month complet- combine to create the third-largest also calls for an adjustable steel an economist at Grand Valley State ed a $16.5 million sale of 8.2 million bank based in Michigan. dam upstream to keep sea lamprey University, has developed a formula from spawning in the river. to help your evaluate your choice: MICH-CELLANEOUS shares of common stock to recapi- River Restoration, a Colorado en- S - (T x V) + E = C. talize the bank. Monarch Commu- Plan for whitewater in GR awaits Ⅲ Six American Indian tribes nity Bank has five offices in gineering firm hired to evaluate S is the savings on the purchase, that operate 14 casinos in Michi- Branch, Calhoun and Hillsdale the first wave of public review the river for the past two years, T the time spent in line, V the val- gan are negotiating a new compact counties, plus nine loan offices in wrote the plan, which now goes be- ue of your time (think your hourly Back in April 2012, Crain’s with the state as the existing 20- Kalamazoo, Calhoun, Berrien, Ing- fore public hearings through next wage), E the enjoyment factor (For year deal was set to expire Satur- Michigan Business wrote about an year.
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