U.S. Sues Michigan Blue Cross Over Pricing

[groovedaddy]

WASHINGTON — The Justice Department sued Blue Cross Blue Shield of Michigan on Monday, asserting that the company, the state’s dominant health insurer, had violated antitrust laws and secured a huge competitive advantage by forcing hospitals to charge higher prices to Blue Cross’s rivals.

The civil case appears to have broad implications because many local insurance markets, like those in Michigan, are highly concentrated, and Blue Cross and Blue Shield plans often have the largest shares of those markets.

In the Michigan case, the Obama administration said that Blue Cross and Blue Shield had contracts with many hospitals that stifled competition, resulting in higher health insurance premiums for consumers and employers.

The State of Michigan was also a plaintiff in the lawsuit, filed in the Federal District Court in Detroit.

http://www.nytimes.com/2010/10/19/business/19insure.html?th&emc=th

[snappyturtle]

1. Wonderful news! K&R nt

[mrcheerful]

2. Anyone that lived in a big 3 city or town has known that since the 1960's

I have had doctors that turned away anyone who didn't have Blue Cross or charged more for as long as I can remember, Blue Cross was what the big 3 auto worker got for health insurance from the big 3. I noticed the difference in the care I got when I was covered by dads Blue Cross then I got on medicaid. In fact just recently I saw a specialist that accepted my medicare card but refused to take my medicare card, I have both plus AAA covers an injury that happened in 1992 from an auto accident.