Southfield (WWJ) -- Michigan's largest health insurer is accused of illegal activity by Attorney General Mike Cox.
Cox on Wednesday accused Blue Cross, Blue Shield, the Detroit-based nonprofit, of illegally using 125-million dollars from health care customers to help its for-profit subsidiary buy an insurance company.
"It violated state law, it violated an agreement the state had with Blue Cross. We are suing to undo what they did," Cox said while speaking live on WWJ Wednesday afternoon. Listen to the interview.
The subsidiary, the Lansing-based Accident Fund, offers workers' compensation insurance.
Cox says health customers paid higher premiums because Blue Cross diverted money to help the Accident Fund buy a California company offering workers' compensation insurance.
Blue Cross spokesman Andy Hetzel says Cox is wrong, predicts a resounding court victory and says Blue Cross' for-profit dealings lower - not raise - the cost of health care.
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