August 18, 2011
LANSING - Attorney General Bill Schuette today announced his office is reviewing Blue Cross Blue Shield of Michigan's (BCBSM) recently proposed plan to acquire a stake in Pennsylvania-based Medicaid company AmeriHealth Mercy. The proposed transaction could involve up to $215 million in BCBSM's subscriber funds.
"We have a responsibility to ensure this substantial transaction conforms to state law and is in the best interest of Blue Cross rate payers and Michigan taxpayers," said Schuette.
On August 9, 2011, BCBSM announced a transaction in which it would team up with Pennsylvania-based Independence Blue Cross to purchase AmeriHealth Mercy, allowing the companies to expand into the national Medicaid market. The transaction would give Michigan-based BCBSM a minority interest in AmeriHealth Mercy of approximately 38%. AmeriHealth Mercy currently provides Medicaid managed care services in Pennsylvania, Indiana, Kentucky, South Carolina and New Jersey.
In a letter sent today to BCBSM counsel, Schuette's office requested documentation related to the transaction, including: all documents filed with state and federal regulators; purchase agreements; independent valuation opinions; articles of organization and other documents related to the governance of the new AmeriHealth Mercy "holding company"; and BCBSM Board minutes and resolutions.
Michigan law grants the Attorney General oversight authority under the Nonprofit Health Care Corporation Reform Act (MCL 550.1101 et seq.) and the Supervision of Trustees for Charitable Purposes Act (MCL 14.251 et seq.).
Schuette asked for the information to be provided within 10 days.