LANSING, Mich. — General Motors is dropping Blue Cross Blue Shield of Michigan as the health insurance administrator for its salaried workforce and switching those plans to Aetna, a change that will hit the state largest private health insurer just as antitrust pressure mounts in Lansing.
The move takes effect Jan. 1, 2027, and will cover about 40,000 non-UAW salaried employees and their families in Michigan and across the country. GM told workers this week, and the open enrollment period for 2027 health insurance plans begins Oct. 21.
GM is self-insured, meaning it pays medical claims directly and hires an administrator to run the plans. Blue Cross has filled that role for decades in Michigan. Company officials said consolidating under Aetna will simplify employee support nationwide and should have little impact on current providers and pharmacies.
Blue Cross spokesperson Andy Hetzel called the loss disappointing but said the insurer will keep covering more than 100,000 GM workers and dependents whose benefits run through the UAW. An internal memo from President and CEO Tricia Keith said the change would affect roughly 92,000 Blue Cross members and was the outcome of an extended procurement process that should accelerate efforts to stay competitive.
The announcement landed the same week Attorney General Dana Nessel sued Blue Cross in federal court, alleging an illegal monopoly that holds about 65 percent of Michigan commercial health insurance market. Michigan is the only state where GM uses Blue Cross as its salaried-plan administrator.
