BCBSM Ends Lobbying Contract, Faces Medicare Challenges and Regulatory Changes
Blue Cross Blue Shield of Michigan (BCBSM) officially concluded its long-standing lobbying contract with Dennis M. Hertel & Associates, with the termination effective January 1, 2026. This marks the end of a lucrative lobbying relationship that generated $635,000 through 74 filings since 2006.
Dennis M. Hertel & Associates also ended its agreement with the Henry Ford Museum and Greenfield Village in Dearborn, Michigan. These terminations leave the firm without any active lobbying clients, as noted in the first-quarter 2026 federal disclosures.
The financial interactions between Hertel and BCBSM illustrate a notable decrease in fees over time. Initially set at $20,000 per filing from 2006 to 2013, fees dropped to $5,000 by 2015, coinciding with BCBSM's federal ICD-10 medical coding transition. Despite this shift, BCBSM has maintained its federal lobbying activities by engaging Mehlman Consulting Inc., allocating $40,000 in the first quarter of 2026 to advocate on behalf of Medicare Advantage and health insurance-related issues.
The expiration of Enhanced Premium Tax Credits on December 31, 2025, poses enrollment challenges for BCBSM's individual market. Proposed budgetary changes in Congress threaten to alter Medicare Advantage payments by approximately $500 billion over eight years starting in 2026. The bipartisan Medicare Advantage Improvement Act of 2026 seeks to enhance oversight of private Medicare Advantage plans, a matter of significant business implications for BCBSM, which reported $40.6 billion in revenue in 2024 alongside a $1.02 billion net loss attributed to climbing medical and pharmacy costs.
Historically, Hertel’s lobbying efforts for BCBSM revolved around Medicare Advantage funding, employee healthcare systems, and health information technology, although many legislative efforts did not progress. BCBSM continues to be a central figure in policy discussions, as evidenced by recent mentions during a House Ways and Means Committee hearing on Medicare fraud, underscoring the insurer's relevance in ongoing Medicare oversight discussions.
Dennis Hertel, a former Democratic congressman, capitalized on his political connections to build a robust lobbying practice. However, the current Republican-led federal landscape prompted BCBSM to adapt by hiring Mehlman Consulting, which boasts a team of 23 lobbyists from diverse political backgrounds. Their expertise, including figures like Sage Eastman and Dean Rosen, is pivotal for BCBSM to maneuver through the dynamic Medicare and Medicaid policy debates.
BCBSM's current lobbying strategy aligns with Mehlman Consulting’s capability to engage with Republican-led committees, underscoring the necessity of evolving strategies within the insurance industry’s regulatory framework.