Schuette reviewing Blue Cross Blue Shield's purchase
LANSING, Mich. (Legal Newsline) - Michigan Attorney General Bill Schuette announced on Thursday that his office is reviewing a health insurer's proposition to acquire a stake in a Pa.-based Medicaid company.
Blue Cross Blue Shield of Michigan recently unveiled a plan to acquire a stake in the Pa.-based Medicaid company AmeriHealth Mercy. The proposed transaction could involve BCBSM subscriber funds of up to $215 million.
"We have a responsibility to ensure this substantial transaction conforms to state law and is in the best interest of Blue Cross rate payers and Michigan taxpayers," Schuette said.
BCBSM announced the proposed transaction on August 9, which would team it with the Pa.-based Independence Blue Cross to purchase AmeriHealth Mercy. This would allow the companies to expand into the national Medicaid market. The transaction would give the Mich.-based BCBSM a minority interest in AmeriHealth Mercy equal to approximately 38 percent. AmeriHealth Mercy currently provides Medicaid managed care services in Indiana, South Carolina, New Jersey, Pennsylvania and Kentucky.
In a letter sent on Thursday to BCBSM counsel, Schuette's office requested documentation related to the transaction, including independent valuation opinions, purchase agreements, articles of organization and other documents related to the governance of the new AmeriHealth Mercy holding company, all documents filed with state and federal regulators, and BCBSM board minutes and resolutions.
Schuette asked BCBSM for the information to be provided within 10 days.
Michigan law grants Schuette oversight authority under the Supervision of Trustees for Charitable Purposes Act and the Nonprofit Health Care Corporation Reform Act.