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Historical Highlights — 1970s

1970


The Blue Shield board of directors, with care providers making up 66 percent of its membership, votes to restructure itself with customer-subscribers making up 52 percent of its membership. In effect, decision-making authority shifts to the consumer.



1971


The majority of Blue Cross and Blue Shield employees move from a dozen rented downtown office locations into a new, 22-story service center and computer facility on East Lafayette. The company retains its former headquarters at 441 East Jefferson.



1973-74


Michigan assumes responsibility for administration of Medicaid, providing health care coverage for the needy.



1975


Michigan Blue Cross and Michigan Blue Shield consolidate into a single corporation — Blue Cross and Blue Shield of Michigan. Customer-subscribers increase their majority control of the new board to 59 percent.



1978


At the request of state officials, BCBSM takes over financially troubled Health Central, a Lansing health maintenance organization. Health Central becomes BCBSM's first subsidiary.



1979


The BCBSM board develops a restructuring plan to increase customer-subscriber representation to 71 percent. House Bill 4555, which embodies the board's restructuring plan, is introduced in the state legislature to replace Public Acts 108 and 109 of 1939.