Twenty-three hospitals filed a motion today in Detroit’s Federal District Court asking a federal judge to throw out a lawsuit filed by the city of Pontiac against Blue Cross Blue Shield of Michigan, according to a Detroit Free Press report.
The suit alleges that the hospitals went along with a plan to charge the highest prices to other insurers while offering discounted prices to BCBS.
BCBS has also filed a motion to dismiss a lawsuit filed by the Department of Justice challenging pricing practices. The policies, known as “most favored nation” clauses, have never been invalidated by antitrust litigation, and BCBS defends them as tools to “protect the affordability of health insurance for millions,” according to the report.
The DOJ, however, says the practice drives costs for some consumers and hurts competing insurers.
Read the Detroit Free Press report on Blue Cross Blue Shield of Michigan.
Read more about BCBS and the most favored nation clause:
– Michigan Blue Cross Wants Dismissal of Antitrust Suit on Payments to Hospitals
– Judge to Decide Whether to Consolidate Class-Action Suits Against BCBS of Michigan
At Becker's 4th Annual CEO + CFO Roundtable, taking place November 2–5 in Chicago, more than 1,500 hospital and health system executives tackle decisions that determine whether organizations thrive or merely survive: protecting margins under cost pressure, choosing where to grow, renegotiating payer relationships, stabilizing the workforce and proving real ROI on technology. This is where leaders work through them together, face-to-face. Apply for complimentary registration now.
