Faced With Antitrust Suit, BCBS Michigan Nixes Deal

Law360, New York (March 8, 2010, 5:51 PM EST) -- Threatened with an antitrust lawsuit from the U.S. Department of Justice, Blue Cross Blue Shield of Michigan has abandoned plans to acquire competitor Physicians Health Plan of Mid-Michigan, a move the DOJ said would have netted it a 90 percent market share in the Lansing, Mich., area.

The DOJ said in a statement Monday that the companies backed off after the department announced it would block the deal via litigation to address concerns that the merger would allow Blue Cross to control physician reimbursement rates and...
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