LANSING, Mich. -- Michigan Attorney General Dana Nessel announced she has filed a lawsuit against Blue Cross Blue Shield of Michigan Mutual Insurance Company for an alleged illegal health insurance monopoly in the state.

Nessel is arguing a health insurance monopoly was accomplished and is in violation of federal and state antitrust law, and has significantly contributed to, or caused, rising costs and negative health outcomes facing Michiganders.

Blue Cross controls 65 percent of the market for health insurance products in the state and 79 percent of the PPO market, according to the AG's office.

“Blue Cross Blue Shield of Michigan, as a member of the Blue Conspiracy, has built and operated an illegal monopoly on health insurance coverage in Michigan, and today we brought this lawsuit for the millions of Michigan households, patients, parents, providers, doctors, small business owners, large employers and taxpayers, and consumers everywhere that are paying the price for Blue Cross’s unchecked market power,” said Nessel. “Blue Cross Blue Shield of Michigan has implemented substantial premium increases and deep reimbursement cuts, unchecked by meaningful competition, to drive up our costs of care, drive down our quality of care, and turn our worsening medical outcomes into their increasing profits. Today we’re taking a significant step toward ending the Blue Conspiracy and their illegal monopoly.”

Nessel claims BCBSM is liable for two claims of violation of the Sherman Act, four claims of violations of the Michigan Antitrust Reform Act, one claim of Public Nuisance, and one claim of Unjust Enrichment.

The lawsuit requests the Court to permanently forbid BCBSM from continuing anticompetitive conduct in Michigan’s healthcare markets, and award the state all available damages, disgorgement, and civil monetary penalties.

Through this lawsuit, Nessel says the aim is to increase access to, and lower the costs of, vital health services in Michigan.

Regarding the suit, Blue Cross Blue Shield of Michigan released the following statement:

"We were blindsided by this announcement by the Attorney General. Blue Cross Blue Shield of Michigan has not yet been served and therefore we cannot comment on the specific merits of the case.  We fundamentally disagree with the Attorney General’s characterization of an uncompetitive insurance market in Michigan.  Competition exists everywhere in our state’s insurance markets, with strong local and national insurers competing with us every day.  For nearly 90 years, Blue Cross has provided coverage for citizens across Michigan, in every county, without exception.  This heritage, and the quality of products and services we provide, is foundational to our success in Michigan."

You can view Nessel's full release online and the full complaint below: