The biggest health insuring Company Blue Cross Blue Shield in Michigan State is accused by the federal government of having been using its dominant position in order to raise health-care costs and limit competition.

The insurance Company has deals with nearly 70 hospitals that are supposed to charge patients more who are insured with other insurances than Blue Cross Blue Shield. In return, Blue Cross increases their payments to the hospitals.

As a consequence, the 4.1 million healthcare consumers insured by Blue Cross need to pay more for related services and their general health insurance coverage.

The insurance Company already declared to contest the lawsuit as being unjust. Andrew Hetzel, vice president of Blue Cross expresses: "At a time when the focus on health insurance affordability has never been more intense, it seems strange and ironic that the federal government would be suing a health plan that has worked very hard to negotiate the lowest prices for its customers with hospitals."

The lawsuit is discussed in line with the general debate on Obama's new health reform that encourages competition on the insurance market by inter alia providing a governmental insurance service to the public.