Blues expansion into Medicaid under AG review

The Michigan attorney general is reviewing Blue Cross Blue Shield of Michigan's proposal to expand into the Medicaid market by acquiring top-ranked Medicaid HMO plan AmeriHealth Mercy, reports the Midland Daily News.

State law restricts the Blues' ability to purchase other insurance companies, so Attorney General Bill Schuette wants to take a closer look at the planned transaction to determine whether it violates the law, according to the Detroit News.

"We have a responsibility to ensure this substantial transaction conforms to state law and is in the best interest of Blue Cross rate payers and Michigan taxpayers," Schuette said.

His office asked the Blues to provide dozens of documents within 10 days, including ones filed with state and federal regulators about the sale, purchase agreements, independent valuation opinions, Blues board minutes and resolutions, and documents about governing AmeriHealth, the Detroit Free Press reports.

Andrew Hetzel, the Blues' vice president for corporate communications, said the insurer believes the acquisition will add "tremendous value'' for subscribers, and it welcomes Schuette's inquiry, the Free Press notes. "We intend to work collaboratively with Attorney General Schuette to ensure that his questions are answered and that Blue Cross affirms the tremendous value of this new business venture to the people of Michigan," Hetzel said.

To learn more:
- read the Detroit Free Press article
- see the Detroit News article
- check out the Midland Daily News article

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