Ford kept TheraMatrix, but neither Chrysler nor GM later signed on with the company.
In an e-mailed response, the insurer says most of the allegations in the court case have been dismissed prior to going to jury. It couldn’t comment on the others.
Blue Cross Blue Shield of Michigan is also the subject of a lawsuit filed last month by the U.S. Justice Department, which claims in an Oct. 18 press release that the insurer is paying hospitals higher prices for medical care if they agree to charge competing insurers as much as 40 percent more than they charge Blue Cross Blue Shield.
Some insurance companies, including Aetna, have pulled some of its offerings out of Michigan, saying they couldn’t make a profit.
Christine Varney, assistant attorney general in charge of the antitrust division, says effective antitrust regulation is vital for healthcare reform. She cites Blue Cross’ most favored nation clauses, which guarantee no other plan can obtain a better rate than the one wielding the MFN.
“The department’s lawsuit alleges that the intent and effect of Blue Cross Blue Shield of Michigan’s MFN is to raise hospital costs for competing health plans and reduce competition for the sale of health insurance e. As a result, consumers in Michigan are paying more for the healthcare service and health insurance,” Varney says.
Kathleen Stoll, deputy executive director of the healthcare advocacy group Families USA, says reform is designed to alleviate two pieces of the picture that cause higher costs and premiums: a dominant insurer and a dominant hospital in a particular market.
