Court Approves $2.8 billion BCBS Antitrust Settlement
Court Approves $2.8 billion BCBS Antitrust Settlement
On August 19th, a federal judge granted final approval to a $2.8 billion settlement between Blue Cross Blue Shield and a class of healthcare providers to resolve antitrust claims.
The lawsuit, filed in 2012, alleged that BCBS and its affiliated member companies violated antitrust laws by dividing the country into exclusive “service areas” and agreeing not to compete with each other in those areas. The providers also argued that the insurer fixed prices for its services. This conduct increased the cost of insurance and deflated reimbursements, the providers alleged.
In addition to the payment to class members, the settlement also requires injunctive relief to improve how BCBS plans operate and interact with providers, the judge’s decision stated. The settlement’s injunctive relief aims to bring more transparency and efficiency in dealings between providers and BCBS plans.
BCBS continues to battle related antitrust claims from hospitals and other healthcare providers that opted to sue directly and not participate in the class action settlement.
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Kristyn Fields’ practice is focused on antitrust litigation. Kristyn is a Partner in the firm’s New York office.
