Insurer files suit against Perrysburg network - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
June 28, 2017 Newswires
Share
Share
Post
Email

Insurer files suit against Perrysburg network

Blade (Toledo, OH)

June 28--Medical Mutual of Ohio filed suit Tuesday in Lucas County Common Pleas Court against Perrysburg-based FrontPath Health Coalition, calling it a "cartel" that unfairly uses its connections to local governments in the Toledo area to secure contracts.

Cleveland-based Medical Mutual claims that several local governmental bodies have awarded contract extensions without competitive bidding processes to FrontPath, which Medical Mutual says has board members from those governmental bodies. Each governmental-affiliated trustee -- as Medical Mutual calls them -- had unlawful interests in contracts between FrontPath and their employers.

Medical Mutual representatives said in an interview that they believe some governmental employees may have been in violation of Ohio ethics laws by having an interest in FrontPath's business when their employers were awarding governmental contracts.

"We don't think it's right, and we want an equal playing field at the end of the day," said Frank Bloomquist, Medical Mutual's regional vice president for Toledo.

Among FrontPath's clients, according to Medical Mutual, are the City of Toledo, Lucas and Wood counties, and the Perrysburg school district. Those clients also have trustees on the not-for-profit company's board. FrontPath's President Susan Szymanski said she was "shocked, but I'm not surprised that MMO would do something like this."

"I think the allegations are specious," said John McHugh, attorney for FrontPath. "It appears to me to be a case where somebody with a lot of money is seeking to challenge somebody with a lot of virtues."

FrontPath was formed in 1988 by a group of Toledo-area Fortune 500 companies. Now, all the company's trustees are or were public officials, according to Medical Mutual's lawsuit.

Medical Mutual alleges that several governmental entities have awarded contract extensions to FrontPath without competitive bids. Mr. Bloomquist said the company has competed with FrontPath for years, but recently decided to request public documents the company believes shows unfair practices.

Jared Chaney, chief communication officer for Medical Mutual, referenced a 2015 request for a proposal from Toledo for administrative services for the city's self-funded insurance program and for network rental. Mr. Chaney said the company was confident in its proposal, but that FrontPath won out.

Trish Decensi, general counsel for Medical Mutual, said the company is only alleging that FrontPath has acted unfairly, and isn't claiming that governmental entities violated any laws in their bidding processes.

"FrontPath through its actions has basically led the individuals down this path," she said, referring to trustees who are in local government.

Janet Schroeder, spokesman for the City of Toledo, said Tuesday evening she couldn't comment about the bidding process because she wasn't aware of Medical Mutual's concerns or the suit.

The lawsuit argues that each contract FrontPath won where a trustee was public official in that governmental entity is null and void, and has requested injunctions against FrontPath over performing those services. It called FrontPath a "collusive buying cartel" that uses its market power and knowledge of market prices to "fix prices and restrict competitive access."

That has caused FrontPath to become a monopsony -- a market with only one buyer -- for governmental self-insurance plans, decreased competition, and ultimately hurt taxpayers, Medical Mutual claims.

Along with the injunction, Medical Mutual wants compensatory and punitive damages awarded to the company.

Guidelines: Please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. Comments that violate these standards, or our privacy statement or visitor's agreement, are subject to being removed and commenters are subject to being banned. To post comments, you must be a registered user on toledoblade.com. To find out more, please visit the FAQ.

___

(c)2017 The Blade (Toledo, Ohio)

Visit The Blade (Toledo, Ohio) at www.toledoblade.com

Distributed by Tribune Content Agency, LLC.

Older

Ohio budget panel votes for Medicaid freeze

Newer

AIS Health’s New Medicare and Medicaid Database Provides Current Enrollment and Premium Rate Information for All Public-Sector Health Plans

Advisor News

  • Poor money habits are a dealbreaker in a new relationship
  • DC plan sponsors see opportunity in alternatives
  • The American Dream: Redefined as financial stability
  • Partial annuitization: How advisors can help clients balance income, growth
  • Guide women along the walk through widowhood
More Advisor News

Annuity News

  • Globe Life Inc. (NYSE: GL) Records 52-Week High Thursday Morning
  • AM Best Managing Director Joins ‘Target Topics’ Podcast to Discuss State of Delegated Underwriting Authority Enterprises Market
  • KBRA Assigns Rating to TruSpire Retirement Insurance Company
  • Partial annuitization: How advisors can help clients balance income, growth
  • Guide women along the walk through widowhood
More Annuity News

Health/Employee Benefits News

  • Findings on Science Detailed by Researchers at Health Analysis Division (The role of nonfinancial factors in the Congressional Budget Office’s health insurance coverage projections): Science
  • New Managed Care Findings from University of Illinois Described (Dental Care Access for Young Children With Medicaid: Groundtruthing Online Data and Actual Access in the Chicago Metro Area): Managed Care
  • Study Results from Kansai Medical University Update Understanding of Cerebrovascular Disease (Cardiovascular Safety of Romosozumab Versus Other Anti-Osteoporosis Medications in Patients with Osteoporosis: A Nationwide Health Insurance Claims …): Central Nervous System Diseases and Conditions – Cerebrovascular Disease
  • This Miami health system could go out-of-network with United. What it means for you
  • Health benefit premiums for NJ school workers expected to rise by 34%
More Health/Employee Benefits News

Life Insurance News

  • Globe Life Inc. (NYSE: GL) Records 52-Week High Thursday Morning
  • AM Best Upgrades Credit Ratings of Sagicor Financial Company Ltd. and Most of Its Subsidiaries
  • Trust, technology and the future of claims
  • New York Life Launches an Indemnity Benefit for its Asset Flex Long-Term Care Insurance Solution
  • AM Best Affirms Credit Ratings of DB Insurance Co., Ltd.
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Prosperity Life GroupSM Launches Prosperity PathWaySM Series, Bringing Greater Choice and Flexibility to Retirement Income Planning
  • Senior Market Sales® Fortifies Annuity Reach With Acquisition of Retirement Planning Firm Stratton & Company
  • RFP #T01625
  • Rockwood Programs Appoints Kerry Ladouceur as Vice President, Financial Lines
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet