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US: Blue Cross case offers rare look into effects of most-favored-nation clauses

By  |  May 28, 2013
US: Blue Cross case offers rare look into effects of most-favored-nation clauses

The antitrust class action initiated in Michigan against Blue Cross Blue Shield of Michigan has been deemed a “case to watch” by reports as the trial, which is scheduled to begin next year, will offer a rare legal analysis into the effects of so-called most-favored-nation clauses. The lawsuit alleges that BCBS broke antitrust law through such clauses in its contracts, as the agreements ensured that hospitals did not pay more to BCBS competitors. The agreements are gradually becoming outlawed in various states; North Carolina was the latest state to deem the provisions illegal earlier this month. Despite legislative action against the contractual clauses, rarely have they been tested in a court of law. The class action is seeking unspecified damages to compensate for alleged overcharges for consumers as a result of the clauses.

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    Full Content: Thomson Reuters

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