Cox Sues Blue Cross Blue Shield Of Michigan Over Medigap Policies

Oct 31, 2012

Former state Attorney General Mike Cox is challenging Blue Cross Blue Shield’s Medigap policies in court.

Former Michigan Attorney General, Mike Cox.

As Michigan Public Radio’s Jake Neher reports, Cox filed a class action lawsuit Wednesday against the state’s largest health insurer.

Medigap provides seniors with health coverage not offered through Medicare. But Cox says some seniors can’t join Blue Cross’s most popular Medigap plan. He says if they have a retiree health savings account through their former employer, they’re out of luck.

“Blue Cross is denying people in violation of federal and state law, in order to push them to buy more expensive plans that Blue Cross can make more money off of,” he says.

Cox filed the lawsuit on behalf of a retired nurse who worked for Ford. He says at least 40,000 people in Michigan could be eligible to join in the case.

Blue Cross officials say the lawsuit is baseless. They say the policy is dictated by state regulators, and the company is simply following the rules.