M-CARE Being Sold To Blue Cross ANN ARBOR, MI (Michigan Radio) -
University of Michigan officials say they are selling the university's
health insurance plan.

The sale of M-CARE to Blue Cross/Blue Shield was confirmed today, though no sale price was announced.

A Blue Cross official says talks began in the spring.

University Health System C-E-O Robert Kelch says the talks were prompted by concerns about increasing costs in insurance industry.

Kelch says, to maintain competitive in the insurance industry,
M-CARE would have to increase its costs. That money would have to be diverted from other University Health System priorities.

More than 200 thousand people, including employees of Michigan Radio, receive health care coverage thru M-CARE.

The deal must still be approved by the university's regents, state and federal insurance industry regulators.

The sale of M-CARE is expected to be final by year's end.
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