Blue Cross Blue Shield facing Justice Dept. questions on hospital agreements

Mar 28 2011

The Wall Street Journal: U.S. Widens Probe of Blue Cross Plans
The U.S. Justice Department is widening a probe into whether Blue Cross Blue Shield health-insurance plans are artificially raising premiums in several states by striking agreements with hospitals that stifle competition from rival insurers. Federal investigators and some state attorneys general have sent civil subpoenas to "Blue" health plans in Missouri, Ohio, Kansas, West Virginia, North Carolina, South Carolina and the District of Columbia, according to people familiar with the matter (Catan and Johnson, 3/25).

Detroit News: Attorney General Seeks To Block Blues' Medigap Rate Increase
Michigan Attorney General Bill Schuette announced today his office has asked the state Office of Financial and Insurance Regulation for a hearing to oppose Blue Cross Blue Shield of Michigan's proposed rate increase affecting 215,000 Medigap subscribers. Blue Cross wants to increase its rates an average of 12.5 percent for those who buy Medicare supplemental insurance and establish a new rate schedule for Medigap subsidies, according to the attorney general's office (Burden, 3/25).