Cox, DOJ file suit against Blue Cross Blue Shield

The Obama Department of Justice and Michigan Attorney General Mike Cox are unlikely to agree on much, but they are joining forces in a lawsuit against Blue Cross Blue Shield of Michigan for collusion and market manipulation to maintain prices in the insurance market in this state. The Detroit News reports:

The Justice Department filed suit against Blue Cross Blue Shield of Michigan today, arguing the health care giant used its market dominance to boost prices for its competitors, resulting in Michigan consumers paying higher prices for health care and health insurance.

The suit – joined by Michigan Attorney General Mike Cox – was filed this morning in U.S. District Court in Detroit. The Justice Department is seeking an injunction to block the practice, but isn’t seeking to recoup what it alleges are overcharges to consumers.

Blue Cross Blue Shield of Michigan has agreements with most acute care hospitals in the state that prevent the hospitals from charging other insurance companies lower prices.

In public statement, Cox said: “It is deeply disturbing that Blue Cross, a non-profit created to help Michigan citizens, would strong-arm hospitals at the expense of hard-working families. These greedy deals are hardly what the legislature had in mind when it created Blue Cross. We need more competition to keep prices down, but with the support of our tax dollars, Blue Cross is doing everything it can to kill its competition.”