A lawsuit alleging Blue Cross companies of conspiring in
Alabama and across the country to illegally stifle competition will continue
after a judge's ruling filed Wednesday. U.S.
District Judge David Proctor in Birmingham denied motions by Blue Cross/Blue
Shield plans, which are independent companies across the United States, to have
antitrust case thrown out. The judge
wrote addressing one of multiple arguments. "But the contentions ... make
clear that plaintiffs have alleged a viable market allocation scheme. If that
scheme is proven, it may subject defendants to antitrust liability." The lawsuit, originally filed 2012 by an Alabama
chiropractor and consolidated with similar suits, is being brought by Blue
Cross subscribers and health care providers against about three dozen Blues,
including Blue Cross and Blue Shield of Alabama which has the largest market
share in a single state of any insurer in the country. The class action lawsuit alleges violation of
federal antitrust laws through a "complete lack of meaningful
competition" within markets across the United States where Blue Cross
businesses sell insurance. The Blue Cross businesses, although independently run,
are linked by an association with a board of directors that sets up the
anti-competitive agreements, the lawsuit alleges. Blue Cross lawyers filed the motion to
dismiss the lawsuit in October, saying the defendants failed to make viable
claims on a number of allegations.
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