Michigan AG Sues BCBS, Alleging Market Monopoly, Underpayment
Michigan Attorney General Dana Nessel filed an antitrust lawsuit against Blue Cross Blue Shield of Michigan, alleging the insurer conspired with other Blues plans nationally to divide markets and avoid competition. The Oct. 8 complaint claims BCBS controls 65% of Michigan's commercial insurance market and 79% of the PPO market, overcharged the state for its employee health plan through duplicate claims and undisclosed fees, and paid hospitals below cost of care, contributing to Sturgis Hospital's closure and a contract dispute with Michigan Medicine. Elevance Health, Highmark, GuideWell, and Health Care Service Corp. are named as co-conspirators. Michigan seeks triple damages, civil penalties, and an injunction barring territory-division agreements; BCBS disputes the characterization and says it has not yet been served.