19 September 2010

State Attorney General Sues Blue Cross, Regulator over Rates

Detroit Free Press

The Michigan attorney general’s office has sued Blue Cross Blue Shield of Michigan and a state regulator over rate changes for some customers who buy insurance coverage to supplement Medicare.

The lawsuit filed today in Ingham County Circuit Court says the Office of Financial and Insurance Regulation should have held a public hearing. Attorney General Mike Cox calls the changes “illegally raising rates.”

Blue Cross and the regulator say the rate changes stem from elimination of a discount on so-called Medigap policies for people who don’t live in Michigan or do get help from employers in buying coverage.

The commissioner of the regulating office in June ordered an end to the discounts. Blue Cross says it’s complying with the order.

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