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US: Blue Cross Blue Shield plans suffer setback in major antitrust case

By  |  April 8, 2018

A court is allowing antitrust litigation against health insurer Blue Cross Blue Shield to proceed, reported The Wall Street Journal. US District Judge David Proctor of Birmingham, Alabama, overseeing a case involving 36 Blue Cross plans ruled Thursday, April 5, a 1980s-era plan to divvy up service areas may violate antitrust laws, a finding attorneys said is a major blow to the companies’ case.

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    Proctor agreed to let plaintiff lawyers move ahead with allegations that some actions by 36 state insurance operations could amount to an automatic violation of antitrust laws.

    The suit claims the insurer’s actions mean higher premiums for customers and lower reimbursement rates for medical providers. Billions of dollars could be at stake.

    An attorney for the Blue Cross Blue Shield Association, Scott Nehs, says the organization will appeal. Blue Cross Blue Shield plans cover more than 100 million people nationwide, according to the Blue Cross Blue Shield Association. Plaintiff’s attorney Barry Ragsdale said it is the largest antitrust case in United States history.

    “It really is a seismic event in this case,” Ragsdale said. “I don’t think you can overstate what a big ruling this is.” Plaintiff’s lawyer Joe Whatley says a court could now consider certifying the lawsuit as a national class action.

    Full Content: Wall Street Journal

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