Navigation Links
Blue Cross Blue Shield of Michigan and Physicians Health Plan of Mid-Michigan Abandon Merger Plans
Date:3/8/2010

Decision to Abandon Deal Follows Justice Department's Decision to Challenge the Acquisition

WASHINGTON, March 8 /PRNewswire-USNewswire/ -- Blue Cross Blue Shield of Michigan's (Blue Cross-Michigan) subsidiary, Blue Care Networks of Michigan, abandoned its attempt to purchase Physicians Health Plan of Mid-Michigan (PHP) after the Department of Justice informed the companies that it would file an antitrust lawsuit to block the acquisition. The department said that, had the acquisition gone forward, it would have given Blue Cross-Michigan control of nearly 90 percent of the commercial health insurance market in the Lansing, Mich., area, which would have resulted in higher prices, fewer choices, and a reduction in the quality of commercial health insurance plans purchased by Lansing area residents and their employers. The acquisition also would have given Blue Cross-Michigan the ability to control physician reimbursement rates in a manner that could harm the quality of health care delivered to consumers.

Blue Cross-Michigan and PHP are the two largest providers of commercial health insurance in the Lansing area. Blue Cross-Michigan has almost a 70 percent market share in Lansing, and PHP is its largest competitor with approximately a 20 percent market share. PHP is owned by Sparrow Health Systems Inc., the largest hospital system in Lansing. Competition between the two companies has led them to offer lower prices, better service, and more innovative products to employers and their employees.

"We welcome the decision by Blue Cross-Michigan and Physicians Health Plan of Mid-Michigan to abandon their deal, which will preserve competition among health insurance companies in Lansing," said Christine Varney, Assistant Attorney General in charge of the Department of Justice's Antitrust Division. "The merger would have likely led to higher prices, lower levels of service and decreased quality of health care for consumers."

The Justice Department worked closely with the Michigan Attorney General's office in its investigation of the proposed Blue Cross-Michigan-PHP merger.

Blue Cross Blue Shield of Michigan Inc., is a Michigan nonprofit corporation headquartered in Detroit, and is the largest health insurer in Michigan. In 2008, Blue Cross-Michigan reported revenues of approximately $21 billion.

Physicians Health Plan of Mid-Michigan is a nonprofit corporation headquartered in Lansing and is owned by Sparrow Health Systems Inc., the largest hospital system in Lansing. PHP is the second largest health insurer in Lansing and in 2008, reported revenues of approximately $250 million.

Sparrow Health System is a Michigan nonprofit corporation headquartered in Lansing. Sparrow owns and operates PHP, as well as Edward W. Sparrow Hospital, the largest hospital in the Lansing area.

SOURCE U.S. Department of Justice

Back to top

RELATED LINKS
http://www.justice.gov

'/>"/>

SOURCE U.S. Department of Justice
Copyright©2010 PR Newswire.
All rights reserved

Related medicine news :

1. Breast cancer prevention practices vary across Canada
2. S.C. BlueCross Creates Corporate Planning Unit, Promotes Davis to Vice President
3. S.C. BlueCross to Integrate Care Management with Personal Health Record in Real Time
4. BlueCare(R) Family Plan, a HUSKY Health Plan from Anthem Blue Cross and Blue Shield in Connecticut, Raises Awareness, Funds and Diapers for New Haven Diaper Bank
5. Blue Cross Blue Shield of Michigan Corrects News Story about Drug Coverage Announcement
6. Independence Blue Cross Makes Music for Members Ears
7. Hundreds of RNs from Across U.S. and World to Join California Nurses Association/NNOC National Convention
8. Sean P. McLaughlin Joins Red Cross as Chief of Operations Support
9. Harvard Researchers Select S.C. BlueCross for National Honor
10. Highmark Blue Cross Blue Shield Introduces New Health Plan Comparison Tool for Consumers
11. Blue Cross and Blue Shield Initiatives Recognized for Increasing Patient Safety and Efficiency
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:1/20/2017)... ... , ... A new partnership between Goodwill® and Roadie, Inc. aims to make ... clothes to couches to dressers and bicycles. Roadie — the national on-the-way delivery network ... donation center through February 28th. , “January is an exciting time when resolutions ...
(Date:1/20/2017)... , ... January 20, 2017 , ... Bionic Sports Nutrition ... walks of life, announced it had a successful January ECRM Trade Show in Hilton ... the United States, which allows it to provide its products to all clients at ...
(Date:1/20/2017)... raton florida (PRWEB) , ... January 20, 2017 , ... ... at the Dana Farber Cancer Institute. For Betsy, the clinical trial has been ... her cancer has not worsened. , Betsy Brauser was diagnosed with ovarian cancer ...
(Date:1/20/2017)... ... January 20, 2017 , ... “The Angel”: a heartwarming and earnest tale ... each of his children. “The Angel” is the creation of published author, Marjorie Lund-Fontaine, ... City, and impassioned writer. , When asked of her new book, Marjorie says, “‘The ...
(Date:1/20/2017)... ... ... in Suffolk”: a story of love, secrets, and mystery. “Christmas in Suffolk” is ... works in a daycare and looks for inspiration in the local coffee shop as ... Seymour’s new book is an adventure of love and secrets. , After ...
Breaking Medicine News(10 mins):
(Date:1/19/2017)... , Jan. 19, 2017 Report Details ... Devices Market? Which areas are going to grow at ... revenues to 2026, assessing data, trends, opportunities and prospects. ... graphs. Discover the most lucrative areas in the industry ... you assess forecasted sales across the all the major ...
(Date:1/19/2017)... SPRING, Md. , Jan. 19, 2017 The ... the treatment of Chronic Idiopathic Constipation (CIC) in adult patients. ... suffering from chronic gastrointestinal disorders," said Julie Beitz , ... the FDA,s Center for Drug Evaluation and Research. "With the ... the most appropriate treatment for their condition." ...
(Date:1/19/2017)... Report Details ... Alzheimer,s Disease Therapeutics and ... our new study reveals trends, R&D progress, and predicted ... the Alzheimer,s disease therapeutics and diagnostics market. Our new ... - How is the Alzheimer,s disease therapeutics and diagnostics ...
Breaking Medicine Technology: