Michigan sues Blue Cross Blue Shield over alleged monopoly

Summarised from 2 outlets · Updated 8 Oct, 19:55 · Archive

Michigan's attorney general has sued Blue Cross Blue Shield, alleging anticompetitive practices and an illegal monopoly in the state's insurance market.

Michigan Attorney General Dana Nessel filed an antitrust lawsuit on Thursday against Blue Cross Blue Shield of Michigan in U.S. District Court for the Eastern District of Michigan. The lawsuit alleges the insurer used anticompetitive agreements to limit competition, increase insurance costs and reduce health care provider reimbursement rates.

According to the state's complaint, Blue Cross Blue Shield controls about 65 per cent of Michigan's commercial health insurance market and 79 per cent of the state's preferred provider organisation, or PPO, market. The state alleges the company achieved and maintained that market share through agreements with other Blue Cross Blue Shield companies that divided territories, restricted products and limited competition.

The lawsuit includes two claims under the federal Sherman Act and four claims under the Michigan Antitrust Reform Act, as well as claims of public nuisance and unjust enrichment. The state seeks to permanently prohibit Blue Cross Blue Shield from continuing the alleged practices and is seeking financial damages, disgorgement and civil monetary penalties.

Blue Cross Blue Shield of Michigan said it was 'blindsided' by the announcement and stated it had not yet been served with the lawsuit. The company said it 'fundamentally disagrees' with the attorney general's characterisation of an uncompetitive insurance market in Michigan.

How it is being reported

• AG sues Blue Cross Blue Shield for alleged monopolyMichigan Attorney General Dana Nessel announced at a news conference Thursday that she is suing health insurance provider Blue Cross Blue Shield of Michigan for allegedly creating an illegal monopoly.Woodtv · 8 Oct, 19:30
• Michigan attorney general sues Blue Cross Blue Shield over alleged anticompetitive practicesMichigan Attorney General Dana Nessel filed an antitrust lawsuit Thursday against Blue Cross Blue Shield of Michigan, alleging the insurer used anticompetitive agreements to limit competition, increase insurance costs and reduce reimbursement rates for health care providers.9And10News · 8 Oct, 19:05

In this story: Michigan Attorney General Dana Nessel · Blue Cross Blue Shield of Michigan · Michigan

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