Justice Dept. Sues Michigan Blue Cross Over Pricing Deals
By THE ASSOCIATED PRESS

WASHINGTON (AP) — The Justice Department alleged Monday in a lawsuit
that Michigan Blue Cross Blue Shield is discouraging competition by
engaging in practices that raise hospital prices, conduct an assistant
attorney general vowed to challenge anywhere else it is found in the
United States.

The suit targets “most favored nation” clauses between Michigan Blue
Cross Blue Shield and health care providers that, according to the
government, essentially guarantee that no competing health care plan can
obtain a better rate.

Michigan Blue Cross Blue Shield has most-favored-nation clauses or
similar language in contracts with at least 70 of 131 general acute care
hospitals in the state, the government alleges.

The lawsuit said that Michigan Blue Cross Blue Shield intended to raise
hospital costs for competing health care plans and reduce competition
for the sale of health insurance.

“As a result, consumers in Michigan are paying more for their health
care services and health insurance,” Assistant Attorney General
Christine Varney, who runs the Justice Department’s antitrust division,
told reporters.

In some instances, the lawsuit states, Blue Cross has raised the prices
it pays for hospital services in exchange for obtaining
most-favored-nation clauses that raise the minimum prices hospitals can
charge to Blue Cross competitors.

The state of Michigan joined the Justice Department in the case filed in
federal court in Detroit.
--
Guns Don't Kill People -- Fundamentalist Religion Kills People!