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US: Motion filed to dismiss suit against Blue Cross, but insurer not off the hook

By  |  March 26, 2013
US: Motion filed to dismiss suit against Blue Cross, but insurer not off the hook

A joint motion was filed with the US District Court in Detroit on Tuesday to dismiss a suit against Blue Cross Blue Shield concerning the insurer’s “most favored nation” clauses in various contracts. The Department of Justice, the state of Michigan and BCBS have filed the motion in response to recent legislation banning the most favored nation clauses for all health insurers. The law goes into affect January 2014, but the state’s insurance commissioner has ordered insurers to not use the clause in any contract as of February 2013. The most favored nation clauses were considered anticompetitive as it forced some hospitals to charge higher prices when dealing with BCBS’s competitors.

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