Michigan Approves Sale of M-Care to Blues

December 26, 2006

The Michigan Office of Financial and Insurance Services last Friday 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.


On the Net:

Blue Cross Blue Shield of Michigan: http://www.bcbsm.com

University of Michigan Health System: http://www.med.umich.edu

Topics Michigan

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