Officer says Blue Cross rate hike should be lower

LANSING, Mich. (AP) - A hearing officer has denied Blue Cross Blue Shield of Michigan's request to raise rates by more than 30 percent for some Medicare supplemental policies, calling it "excessive."

Instead, the officer recommended Friday that Blue Cross increase Medigap rates by less than 4 percent in February.

Michigan's insurance commissioner is expected to make a final decision in December.

The state attorney general's office fought the proposed 31 percent rate hike. Attorney General Mike Cox says the recommendation of a smaller rate increase is "great news" and would save $85 million in the first year for 200,000 seniors who buy Blue Cross Medigap insurance to supplement their Medicare coverage.

Blue Cross says it's concerned with the hearing officer's interpretation of a subsidy it's required to pay.