A Detroit judge has denied a request by Blue Cross Blue Shield of Michigan to dismiss a federal and state lawsuit claiming the payor drove up costs for competitors through anti-competitive contracts, according to a Bloomberg report.
The denial was issued by U.S. District Judge Denise Page Hood — the same judge who refused the payor’s first request to dismiss the lawsuit in June. BCBS appealed that decision, which resulted in this second denial.
The federal and state governments allege the Blues signed contracts with more than half of Michigan’s acute care hospitals that prevent them from charging other insurance companies lower prices. The suit also claims that in some cases the Blues agreed to pay more reimbursement to hospitals if they charged higher rates to competing payors in the area. It was filed last fall by the U.S. Justice Department and former Michigan Attorney General Mike Cox.
Read the Bloomberg report on the lawsuit against Blue Cross Blue Shield of Michigan.
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