February 2, 2009
LANSING -
Attorney General Mike Cox today
announced that he filed an appeal of two Ingham County Circuit Court orders in
his suit against Blue Cross Blue Shield of Michigan.
Cox originally filed the
suit in July 2008, alleging that Blue Cross illegally purchased several
for-profit companies and improperly transferred $125 million to its subsidiary,
the Accident Fund, to purchase one of the companies. Although Judge Paula
Manderfield ruled in October 2008 that the Attorney General's complaint
regarding the illegal purchases had merit, Manderfield reversed herself last
month when she dismissed the complaint. Manderfield had earlier transferred the
other complaint regarding the improper transfer of funds to the Office of
Financial and Insurance Regulation for review. Cox is appealing both decisions
to the Michigan Court of Appeals.
"It is one of my
responsibilities as Attorney General to fight for access to affordable health
care for Michigan residents while ensuring that Blue Cross follows the law,"
said Cox. "Because Blue Cross' activities are improper and contributing to
higher insurance rates for Michigan citizens, I must appeal these decisions."
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