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Last updated 2:12AM ET
February 26, 2021
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Attorney General Sues Blue Cross
(2008-07-02)
(wgvu) - Attorney General Mike Cox is suing Blue
Cross Blue Shield of Michigan, the state's largest provider of
health insurance.
Cox on Wednesday accused the Detroit-based nonprofit of
illegally using money from health care customers to help its
for-profit subsidiary buy an insurance company.
The subsidiary, the Lansing-based Accident Fund, offers workers'
compensation insurance.
Cox says health customers paid higher premiums because Blue
Cross diverted money to help the Accident Fund buy a California
company offering workers' compensation insurance.
A Blue Cross spokesman says Cox is wrong, predicts a resounding
court victory and says Blue Cross' for-profit dealings lower - not
raise - the cost of health care.
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