Why It Matters

Blue Cross Blue Shield of Michigan ended its relationship with Dennis M. Hertel & Associates effective January 1, 2026, with the termination filing signed April 30. The Blue Cross Blue Shield Michigan lobbying relationship spanned nearly two decades, generating $635,000 in total fees across 74 filings dating back to 2006.

The termination wasn't just significant for BCBSM. It was the firm's last active client relationship. Dennis M. Hertel & Associates simultaneously terminated its other remaining client, the Henry Ford Museum and Greenfield Village in Dearborn, Michigan, also effective January 1, 2026. Both termination filings were signed on the same day. The firm now has no active lobbying clients on record in the BCBS Michigan LDA filings or any other first-quarter 2026 disclosures.

The financial trajectory of the relationship tells its own story. Hertel billed $20,000 per filing during the early years of the engagement, from roughly 2006 through 2013. By 2015, that rate had dropped to $5,000 per filing, where it remained until the end. That reduction, from $20,000 to $5,000, roughly tracks with the resolution of one of the firm's core assignments for BCBSM: shepherding the client through the federal transition to ICD-10 medical coding, which was completed in October 2015.

BCBSM did not reduce its federal lobbying footprint. First-quarter 2026 disclosures show the insurer retained Mehlman Consulting Inc., reporting $40,000 for the quarter on issues including Medicare Advantage, prescription drug pricing, health insurance, and the Enhanced Premium Tax Credit. BCBSM also reported $276,347 in in-house lobbying through lobbyist Amy Modlin, covering pharmacy, health issues, and Medicare/Medicaid. The health insurance regulatory lobbying work continues, just under different representation.

Broader Context

The Enhanced Premium Tax Credits that helped stabilize ACA marketplace enrollment expired on December 31, 2025, after Congress failed to extend them. That directly affects BCBSM's individual market enrollment in Michigan. Separately, the budget reconciliation package moving through Congress includes projected Medicare Advantage payment reductions of roughly $500 billion over eight years beginning in 2026, according to reporting on the "One Big Beautiful Bill Act." The bipartisan Medicare Advantage Improvement Act of 2026 has also been introduced, which would increase oversight of private MA plans and restrict their ability to apply medical necessity criteria more restrictive than traditional Medicare.

For an insurer the size of BCBSM, which reported $40.6 billion in enterprise revenue in 2024 while absorbing a $1.02 billion net loss driven largely by rising medical and pharmacy costs, these are not abstract policy debates.

Michigan Legislative Disclosure and Congressional Attention

The Michigan legislative disclosure record for this relationship reflects decades of work before the House Ways and Means Committee on Medicare Advantage funding, employee-based healthcare systems, health information technology, and ICD-10 implementation. Most of the specific legislation Hertel worked on for BCBSM during the active years of the engagement, including bills addressing Medicare Advantage payment rates and ICD-10 transition timelines, either stalled in committee or passed one chamber without advancing further.

In April 2026, Blue Cross Blue Shield of Michigan was referenced in a House Ways and Means Committee hearing on Medicare fraud, where a witness from Independence Blue Cross discussed how Blue Cross plans collaborate on fraud detection. Rep. Vern Buchanan (R-FL) conducted the questioning. The mention was not adversarial, but it illustrates that the Blue Cross brand remains a presence in committee discussions on Medicare oversight.

The Hertel Background

Dennis Hertel is a former Democratic congressman who represented Michigan's 14th district from 1981 to 1993. His lobbying practice was built on relationships developed during that era, primarily on the Democratic side of the House. His documented congressional staff experience after leaving office includes a brief two-month tenure as counsel in the personal office of Rep. Michael McNulty (D-NY) during the 110th Congress in early 2009.

The federal government is currently under unified Republican control, with Republicans holding the White House, Senate, and House majority. The committees most relevant to BCBSM's core issues, including Ways and Means and Energy and Commerce, are chaired by Republicans.

The Bottom Line

Mehlman Consulting deployed 23 lobbyists on BCBSM's behalf in the first quarter of 2026. The roster includes lobbyists with backgrounds spanning both parties and both chambers.

Among the notable names: Sage Eastman is a former senior Republican staffer on the House Energy and Commerce Committee, which has jurisdiction over much of the ACA and Medicaid policy landscape. Dean Rosen is a well-known Republican health policy hand with deep ties to Senate Finance Committee work on Medicare. Paul Thornell brings Democratic relationships to the table, providing bipartisan coverage.

The bench Mehlman brings to BCBSM's Medicare Advantage, prescription drug pricing, and ACA work reflects access to the committees and members who are currently writing the legislation that will most affect the insurer's bottom line. That is a different set of relationships than what a two-person shop built on 1980s Democratic House ties could offer in the current environment.

BCBSM's Michigan health insurance lobbying operation, at least at the federal level, is now concentrated in a firm with current Republican committee access at a moment when Republican majorities are actively reshaping Medicare and Medicaid policy.

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