The state of Michigan sued Blue Cross Blue Shield of Michigan on Oct. 8, alleging a conspiracy among health plans to reduce competition, which harmed both health care providers and patients.
The state alleges that reduced competition has produced lower reimbursement rates for providers, which has led to hospital closures, the loss of labor and delivery units, and higher rates of infant mortality.
Attorney General Dana Nessel said the insurer had operated in concert with other Blue Cross Blue Shield plans to limit competition in the state. “Blue Cross Blue Shield of Michigan has implemented substantial premium increases and deep reimbursement cuts, unchecked by meaningful competition,” Nessel said in a press release….