Blue Cross of Minnesota to pay $71M as part of nationwide antitrust settlement
Health insurer
The national settlement announced in October creates a
It also requires operational changes at
The insurers denied the allegations when the settlement was announced last fall, insisting their structure has provided access to high-quality care while promoting affordability.
The original lawsuit filed in 2013 alleged that health care providers received significantly less compensation because market dominance by the Blues blocked health plan competition that would increase payment rates.
Plaintiffs allege Blue Card inefficiencies have long created costly administrative burdens that are part of a broader anti-competitive structure among the insurers, ranging from price fixing to agreements that prohibit competition among member companies.
A trade group for the carriers offered no comment last week on the disclosure by
“If finally approved by the court, the provider settlement agreement will require the defendants to make a monetary settlement payment, the company’s portion of which is estimated to be
A judge has scheduled a hearing to consider the fairness of the proposed class action settlement on
Health care providers may file claims if they currently or in the past provided health care services, equipment or supplies to any patient covered by one of the settling Blue insurers from
“In addition to the substantial damages fund, the settlement outlines crucial changes in the business relationship between
The settlement document filed with the court says that “nothing in this agreement will constitute or be construed as an admission of liability or wrongdoing by any settling defendant. ... Settling defendants expressly deny any wrongdoing or liability whatsoever for any and all such claims and allegations.”
For decades, health insurers using the
In December, the
Regional markets in
In a complaint filed by a different set of plaintiffs in the same multi district litigation, Blues plans in 2021 collectively agreed to pay
In settling the subscriber case, the Blues struck an agreement to maintain exclusive service areas for the
For example, one provision in the earlier settlement eliminated caps on revenue that the companies can generate by selling coverage through affiliates that don’t use the
Another provision in the subscriber settlement would let certain large employers seek a competing bid from a second
If approved by the court this summer, the health care provider settlement “will hold
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Blue Cross of Minnesota to pay $71 million as part of nationwide antitrust settlement
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