business
Mich. Blues' bid to become Medicaid MCO under review
NEWS IN BRIEF — Posted Sept. 12, 2011
A proposed partnership between Michigan's Blues plan and Philadelphia-based Independence Blue Cross will have to pass muster with Michigan's attorney general, whose office historically has been critical of the Blues and its planned acquisitions.
Blue Cross Blue Shield of Michigan announced its plan to buy a 40% stake in Medicaid managed care organization AmeriHealth Mercy Aug. 9. It is spending $135 million to buy the stake from Mercy Health System, a Catholic health system in Philadelphia. Independence Blue Cross, one of Pennsylvania's four Blues plans, holds the other 50% stake in AmeriHealth Mercy and will pay $35 million to boost its share to 60%.
Michigan Attorney General Bill Schuette said in a news release Aug. 18 that he would review the deal.
"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 in the release.
In March 2010, under former Attorney General Mike Cox, the office joined with the U.S. Dept. of Justice antitrust division to successfully block the Blues' attempted purchase of Lansing, Mich.-based Sparrow Health Plan.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2011/09/12/bibf0912.htm.
