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Blue Cross Rate Increase Temporarily Blocked

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An Ingham County Circuit judge has stopped Blue Cross Blue Shield of Michigan from implementing rate increases as high as 66 percent for some seniors.

Tuesday’s preliminary injunction also requires a public meeting be held.

The Michigan attorney general’s office filed suit in September against Blue Cross and a state regulator, claiming the Office of Financial and Insurance Regulation should have held a hearing.

State officials say the decision affects 8,000-9,000 policies out of about 200,000 covered by BCBS Medigap policies.

Blue Cross and the regulator said the rate changes stemmed from elimination of a discount on Medigap policies for people who don’t live in Michigan or do get help from employers in buying coverage.

Blue Cross said it was complying with an order to end to discounts.

(Copyright 2010 by The Associated Press. All Rights Reserved.)

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