business
Judge to consider Michigan Blues' request for rate increase
NEWS IN BRIEF — Posted Oct. 11, 2010
An administrative law judge will hear from Michigan's attorney general later this year to consider whether Blue Cross Blue Shield of Michigan should be allowed to raise rates for 195,000 customers.
Michigan Attorney General Mike Cox filed a motion to intervene and challenge the proposed rate increases Sept. 20. In a news release announcing his objection, Cox cited the Blues' surplus of nearly $3 billion.
A statement from the Michigan Blues said it expects to lose between $40 million and $60 million on the individual and group conversion lines of business in 2011, even with the requested rate increases of as much as 15%.
The state insurance commissioner will make the final decision on whether to grant the rate increases.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2010/10/11/bibf1011.htm.