On October 8, 2026, Michigan Attorney General Dana Nessel filed a lawsuit in the United States District Court for the Eastern District of Michigan against Blue Cross Blue Shield of Michigan Mutual Insurance Company (“BCBSM”), alleging violations of federal and state antitrust laws and engagement in anticompetitive behaviors.
The lawsuit identifies two types of alleged harm involving BCBSM. The first alleges that BCBSM conspired with other Blue Cross Blue Shield (BCBS) plans to divvy up customers and territories in order to eliminate competition for health insurance services. The lawsuit alleges this action resulted in overcharges, inflated premiums, and higher out-of-pocket expenses to the detriment of the state employees’ medical benefit plan and Michigan employers and consumers.
The second allegation is that BCBSM used its dominant market position to drive down the rates it paid healthcare providers to near the lowest in the nation, sometimes even below the medical providers’ own costs to provide care. The filing states that, “Unable to obtain appropriate, market payments from Blue Cross, Michigan providers have been forced to reduce services, cut staff, close facilities, or exit the Michigan market entirely, degrading the healthcare infrastructure upon which Michigan residents depend and leading to the State’s worsening health outcomes.”
In her press release, Attorney General Nessel stated, “Blue Cross Blue Shield of Michigan has implemented substantial premium increases and deep reimbursement cuts, unchecked by meaningful competition, to drive up our costs of care, drive down our quality of care, and turn our worsening medical outcomes into their increasing profits.”
Click here to read the full press release.
In 2025, the Michigan State Medical Society (MSMS) published a number of articles about the $2.8 billion antitrust settlement that resulted from a class action lawsuit against the BCBS Association initiated well over ten years ago by physicians, hospitals, large health systems, and provider organizations. In that case, the plaintiffs also argued that BCBS violated antitrust laws by colluding to limit competition and lower reimbursement. A portion of the settlement was available for eligible physicians who provided health care services to patients insured by BCBS plans during a specified time period.
Physicians who filed a claim with the BCBS Provider Settlement Claims Administrator and have not yet received acknowledgment of receipt of their claim are encouraged by MSMS to visit the Settlement Website for providers, monitor the email address associated with their portal account, and log in to the portal frequently for the latest notices and updates. Inquiries may also be directed to the Administrator via phone (888-452-3095), email, or mail.
In the meantime, MSMS will monitor the status of the Attorney General’s lawsuit and provide updates of interest to physicians and patients as more details emerge.
If you have questions, please feel free to contact Stacey Hettiger, MSMS Senior Director of Advocacy and Payor Relations, at shettiger@msms.org or 517-336-5766.