Kelley Now Advocates Blue Cross Legislation

<p lang="en-US">Dec. 9--Former Michigan Attorney General Frank Kelley -- a consumer advocate who spent years fighting rate hikes by the state's largest health insurer -- debuted Monday as an advocate in radio ads for legislation sought by Blue Cross Blue Shield of Michigan to change the state's individual health insurance market.</p> <p>Kelley said he is not being paid for the ads.</p> <p>But records with Michigan's Department of State show that Kelley's firm, Kelley Cawthorne, has been working as a paid lobbyist for Blue Cross since 1999. Kelley could not be reached again late Monday to explain his firm's relationship to the insurer.</p> <p>The firm has been one of a half-dozen lobbying firms working for Blue Cross to pass the individual market reform legislation.</p> <p>"I did it on my own," he said in a telephone interview from his Lansing law office. "I volunteered. I'm getting no compensation."</p> <p>Kelley said he changed his mind and now supports the measures, after House revisions reinstated oversight by the attorney general of rate hikes.</p> <p>The bills, which the Legislature may vote on this week, would let Blue Cross immediately raise rates, but the attorney general could challenge them in court. Now, challenges delay rate hikes for far too long, Kelley said.</p> <p>Kelley was attorney general from 1961-98. Attorney General Mike Cox, who opposes the legislation, released 23 pages citing Kelley's prior opposition to rate hikes.</p> <p>"That is why it is so disappointing that someone who was such a forceful advocate for strong oversight and regulation has now adopted a position so at odds with this office's historical defense of Michigan consumers and their health care needs," Cox's statement said.</p> <p>Dan Loepp, CEO of Blue Cross, was Kelley's press chief and wrote many of the anti-Blue Cross press statements, Cox's office said.</p>