MI Blues sued by state over acquisition

Michigan's attorney general has filed a lawsuit against Blue Cross and Blue Shield of Michigan over allegations tied to its acquisition of a for-profit worker's compensation firm. In the suit, Attorney General Mike Cox accuses the not-for-profit Blue plan of illegally using subscriber funds to acquire a worker's comp firm. He notes that the Blue plan transferred $125 million to a subsidiary known as the Accident Fund, then acquired CompWest insurance for $127 million that same month. State law, however, bars the Michigan Blue plan from using its own non-profit revenue toward the Accident Fund's activities. Based on these charges, AG Cox now wants the court to force the Blues to sell off the California-based worker's comp plan--or force BCBS of Michigan to cough up $125 million some other way.

To learn more about the lawsuit:
- read this Modern Healthcare article [1] (reg. req.)

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