Attorney general sues Blue Cross Blue Shield of Michigan over monopoly claims

On Thursday, Michigan Attorney General Dana Nessel filed a lawsuit against Blue Cross Blue Shield of Michigan (BCBSM) in federal court, alleging the insurer formed an illegal monopoly and used its power to negotiate unsustainably low reimbursement rates. The complaint cites license agreements and territorial rights deals with other state Blue Cross companies as ways BCBSM built influence.

The lawsuit claims that BCBSM’s dominance, which a 2025 AMA study found controlled about 65% of Michigan’s healthcare insurance market, drains state resources by charging supracompetitive fees per employee. Nessel said the case will be heard in the Eastern District of Michigan and seeks monetary damages and an end to the alleged monopoly.

The attorney general’s filing also notes that the insurer has not yet been served and could not comment on the merits. The case is expected to be pursued by the incoming Attorney General, Doug Lloyd, who has pledged to protect Michigan consumers and will review the evidence to determine the best interest of the people of Michigan.

Read the full story at michiganpublic.org.