Blue Cross files suit against Madison HMO.(Blue Cross and Blue Shield United of Wisconsin)(Brief Article)

Blue Cross & Blue Shield United of Wisconsin has filed a lawsuit challenging whether a competing managed care plan can selectively discontinue serving specific geographic markets.

A lawsuit in which Blue Gross and Unity Health Plans, a health maintenance organization based in Sauk City, are the plaintiffs was filed in Dane County Circuit Court Oct. 23 against the Office of the Commissioner of Insurance.

The suit asks for a declaratory judgment of whether Wisconsin statutes allow for the cancellation of nonprofitable small employer group health benefit plans by insurers redefining their service areas.

The legal action was prompted by Group Health …