Michigan, U.S. sue Blue Cross, charge anticompetitive pricing

from the Detroit Free Press:



The Justice Department filed an antitrust suit today against Blue Cross Blue Shield of Michigan saying its contracts with at least 70 of the acute care hospitals in the state force them to raise prices and prevent other insurers from competing with them.

Antitrust officials say the provisions likely resulted in Michigan consumers paying higher prices.

The lawsuit was filed in U.S. District Court in Detroit and joined by the state of Michigan.

The provisions being challenged are known as “most-favored nation” clauses or MFN. In the health care realm, they generally refer to contractual clauses between health insurance plans and health care providers that – according to the Justice Department – “essentially guarantee that no other plan can obtain a better rate than the plan wielding the MFN.”

Blue Cross defended its used of the discounts. .........(more)

The complete piece is at: http://www.freep.com/article/20101018/NEWS06/101018024/1319/State-U.S.-sue-Blue-Cross-charge-pricing-is-rigged#ixzz12jNgGOLi

K&R

the government is fighting them. Yesterday there was an Anthem increase cited on here, it needs to be turned in too.

To whom would you report this?
Our insurance hasn't seen that kind of hike, but I'm sure plenty of others will be interested in following your suggestion.

Health Insurance Premium Grants: Detailed State by State Summary of Proposed Activities

On August 16, U.S. Department of Health and Human Services Secretary Kathleen Sebelius announced the award of $46 million to enhance States’ current processes for reviewing health insurance premium increases. Forty-five States and the District of Columbia applied for grants, and each will receive $1 million in grant funds to help improve the review of proposed health insurance premium increases, take action against insurers seeking unreasonable rate hikes, and ensure consumers receive value for their premium dollars. A list of States’ current health insurance rate review practices and a summary of their intended use of these new resources is below.

<snip> The chart below provides a detailed summary of how each State intends to overhaul its health insurance premium review process.

http://www.healthcare.gov/news/factsheets/rateschart.html

___________________


<snip> Already, my Department has provided 46 states with resources to strengthen the review and transparency of proposed premiums. Later this fall, we will issue a regulation that will require state or federal review of all potentially unreasonable rate increases filed by health insurers, with the justification for increases posted publicly for consumers and employers. We will also keep track of insurers with a record of unjustified rate increases: those plans may be excluded from health insurance Exchanges in 2014. Simply stated, we will not stand idly by as insurers blame their premium hikes and increased profits on the requirement that they provide consumers with basic protections.

Americans want affordable and reliable health insurance, and it is our job to make it happen. We worked hard to change the system to help consumers. It is my hope we can work together to stop misinformation and misleading marketing from the start.

Sincerely,

Kathleen Sebelius

http://www.hhs.gov/news/press/2010pres/09/20100909a.html

Remember they stopped the huge increases in CA that Anthem wanted.

:thumbsup: