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Nessel Accuses Blue Cross Blue Shield of Running Illegal Monopoly
The complaint says BCBSM controlled about 65% of Michigan’s health insurance market and used its power to raise costs and limit competition.
On Thursday, Oct. 8, 2026, Michigan Attorney General Dana Nessel filed a federal antitrust lawsuit against Blue Cross Blue Shield of Michigan, alleging the insurer operates an "illegal monopoly" harming state residents and employees.
Nessel alleges Blue Cross conspired with other Blue Cross Blue Shield entities to "allocate customers and territories," restricting competition for large employers and state employee insurance plans across the state.
Controlling approximately 65% of all health insurance products and 79% of the PPO market, Blue Cross has allegedly abused its dominance to lower provider payments while filing premium increases of about 24% for individual members this year.
Blue Cross issued a statement claiming it was "blindsided" by the lawsuit and disagreed with characterizations of an uncompetitive market, while Nessel seeks damages and a permanent injunction against the company's conduct.
Federal cases often take months or years to resolve, and Nessel's successors—including candidates Doug Lloyd and Eli Savit—will determine how the state proceeds with this antitrust enforcement effort.