Texas Attorney General Greg Abbott's office is weighing an appeal of a state court's ruling last week that Blue Cross and Blue Shield of Texas is not a charity. A state appeals panel affirmed a district court ruling that said the insurer should not have to pay a multimillion-dollar settlement as part of its 1998 merger with Blue Cross and Blue Shield of Illinois. Previous state Attorney General Dan Morales filed suit to block the $7.6 billion merger, alleging the Blues' assets were public. Under their settlement, the Texas Blues agreed to pay $350 million plus 5% interest over 20 years to a charitable trust if the state won its case. The court found that the law under which the Texas Blues was created did not require it to use revenue for general charitable purposes. The attorney general's office has until mid-September to decide whether to appeal to the Texas Supreme Court. -- by Mary Chris Jaklevic
Texas to decide whether to continue Blues fight
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