(AP) -- LANSING, Michigan - State regulators have approved an average 22 percent rate increase for Blue Cross Blue Shield of Michigan health insurance policies covering about 200,000 people.

The rate increases announced Thursday are significantly lower than the company initially requested for the non-group and group conversation policies typically bought by people under 65 who aren't covered by employer-based or government health plans. Blue Cross had sought rate increases averaging 42 percent to 56 percent.

Attorney General Mike Cox challenged the initial rates and struck a deal with Blue Cross on the lower rates last week.

The new rates take effect Oct. 1.

Regulators also approved interim rate increases of nearly 5 percent for some Blue Cross Medicare supplemental policies.

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