Judge Rules in Michigan Lawsuit Against Blue Cross

An Ingham County judge has ruled for and against Blue Cross Blue Shield in its defense against a state lawsuit accusing the insurer of illegally shifting money to help buy three workers’ compensation companies.

Circuit Judge Paula Manderfield dismissed one count and referred another to the Michigan insurance commissioner, which made Blue Cross officials happy.

Manderfield, however, let Michigan Attorney General Mike Cox’s office proceed with its claim that the Accident Fund, Blue Cross’ for-profit subsidiary, did not meet certain requirements to buy insurance companies.

Blue Cross says its actions were legal and cites a letter from the insurance commissioner to back its case.

Cox says the commissioner’s legal interpretation is wrong.