The Michigan Office of Financial and Insurance Services has approved the sale of M-Care, the insurance business of the University of Michigan Health System, to Blue Cross Blue Shield of Michigan.
The deal, announced in September, calls for Detroit-based Blue Cross Blue Shield to pay $240 million. Officials expect the sale to be finalized by the end of December.
The OFIS approval is contingent upon a review by the Michigan attorney general, which is expected by the end of the year. A separate review by the Department of Justice was closed on Nov. 13.
Under the agreement, Blue Cross’ HMO subsidiary, Blue Care Network, will purchase the M-Care HMO plans and the Medicaid business, M-Caid. Blue Cross itself will purchase Michigan Health Insurance Corp., M-Care’s PPO subsidiary.