DETROIT, Mich. — Michigan Attorney General Dana Nessel filed an antitrust lawsuit Wednesday, Oct. 8, accusing Detroit, Mich., based Blue Cross Blue Shield of Michigan of building an illegal health insurance monopoly that squeezed providers and raised costs for families.
The complaint was filed in U.S. District Court for the Eastern District of Michigan. Nessel alleges Blue Cross worked with other Blue Cross Blue Shield entities to carve up territories and customers, leaving large employers with little choice for worker coverage.
An American Medical Association report cited in the case says Blue Cross controlled 65% of all health insurance products and 79% of the PPO market in Michigan. Nessel said the company has about 4.5 million customers in the state.
The lawsuit states Blue Cross filed annual premium increases of about 24% for individual plan members and 11.2% for small group markets this year. Blue Cross executives blame rising drug and hospital costs; the Detroit-based insurer posted $1.44 billion in losses in 2024.
Nessel said Michigan has the lowest reimbursement rates in the Midwest and that providers have cut services, closed facilities or left the market. The filing includes two counts of violations of the Sherman Act and four counts under the Michigan Antitrust Reform Act.
Blue Cross said it fundamentally disagrees with the attorney general’s characterization of an uncompetitive insurance market in Michigan and pointed to local and national rivals. Mayor Mary Sheffield leads Detroit City Hall as the dispute over the region’s dominant insurer unfolds.
