Blue Cross Sues Nebraska Over Improper Lobbying During Health Plan Switch

Blue Cross and Blue Shield of Nebraska filed a lawsuit on Wednesday to prevent the state from switching to a new health insurance company, according to a Bloomberg Businessweek report.

According to the report, Blue Cross alleges improper lobbying on United Healthcare's behalf, saying the chairman of the Nebraska Republican Party violated state rules by lobbying for the insurance company.

Nebraska officials have said switching to United Healthcare will save taxpayers and state employees up to $8 million annually. The state plans to make the switch on July 1. Blue Cross officials say the change will actually cost an extra $10 million a year due to limits in the United Healthcare network.

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