A U.S. District Judge will soon decide whether to consolidate a number of class-action lawsuits against Blue Cross Blue Shield of Michigan in regards to its "most favored nation" contracts with hospitals, according to a Crain's Detroit Business report.
Four class-action suits seeking more than $20 million in combined damages have been filed, although one has already been dismissed, according to the report. A fifth suit is expected.
Attorneys representing the various plaintiffs in many of the cases are scheduled to appear before Judge Denise Page Hood on March 2, who will decide if the cases should be consolidated.
The class-action suits follow a joint antitrust suit by the Department of Justice and the Michigan Attorney General, which argues the insurer violated antitrust statues by requiring hospitals it contracted with to charge its competitors a certain percentage more than BCBS paid for services or risk payment reductions.
The class-action suits allege similar violations as the DOJ suit but seek specific damages for insurers or insured businesses, according to the report.
BCBS has asked the courts to dismiss the DOJ suit, calling the most favored nation clauses "a tool that Blue Cross uses to protect the affordability of health insurance for millions of Michiganders."
Read the Crain's report on BCBS of Michigan.
Read more coverage on BCBS of Michigan:
- Michigan Blue Cross Defends Demand For Hospitals' Lowest Price
- Michigan Blue Cross Wants Dismissal of Antitrust Suit on Payments to Hospitals
Four class-action suits seeking more than $20 million in combined damages have been filed, although one has already been dismissed, according to the report. A fifth suit is expected.
Attorneys representing the various plaintiffs in many of the cases are scheduled to appear before Judge Denise Page Hood on March 2, who will decide if the cases should be consolidated.
The class-action suits follow a joint antitrust suit by the Department of Justice and the Michigan Attorney General, which argues the insurer violated antitrust statues by requiring hospitals it contracted with to charge its competitors a certain percentage more than BCBS paid for services or risk payment reductions.
The class-action suits allege similar violations as the DOJ suit but seek specific damages for insurers or insured businesses, according to the report.
BCBS has asked the courts to dismiss the DOJ suit, calling the most favored nation clauses "a tool that Blue Cross uses to protect the affordability of health insurance for millions of Michiganders."
Read the Crain's report on BCBS of Michigan.
Read more coverage on BCBS of Michigan:
- Michigan Blue Cross Defends Demand For Hospitals' Lowest Price
- Michigan Blue Cross Wants Dismissal of Antitrust Suit on Payments to Hospitals