AG announces suit against Blue Cross for rate increase

Attorney General Mike Cox has announced that his office filed a lawsuit in Ingham County Circuit Court last week against Blue Cross Blue Shield of Michigan (BCBSM) and the State of Michigan Office of Financial and Insurance Regulation (OFIR) for allegedly illegally raising rates by up to 66 percent on seniors who purchase Medicare supplemental insurance known as Medigap.

Cox also asked for a temporary restraining order to stop the rate increase from being implemented until a hearing for a preliminary injunction can be held.

The suit charges that OFIR violated the Nonprofit Health Care Corporation Reform Act by approving the rate increase without providing notice, depriving the Attorney General's office and others the ability to request a hearing as provided by state law. The preliminary injunction is requested because immediate implementation of the proposed 66% increase will cause seniors to drop their coverage, putting their physical and financial health at risk.

Published: Mon, Sep 20, 2010