Michigan AG, Justice Department Sue Over Blue Cross Use of Parity Clauses

Oct. 19, 2010, 4:00 AM UTC

A complaint filed by the Michigan attorney general and U.S. Department of Justice Oct. 18 charges that the use by Blue Cross Blue Shield of Michigan of “most favored nation” or parity clauses in its contracts with many of the hospitals in the state violates state and federal antitrust laws (United States v. Blue Cross Blue Shield of Michigan).

The contracts, with clauses that either prohibit a hospital from giving any other insurer a better rate than the rate it has negotiated with BCBSM or require it to charge other insurers the MFN rate plus a percentage, constitute ...

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