"In other words, the plaintiffs alleged that Blue Cross deflated reimbursements by colluding across different states to pay no more than a certain amount for services, said Guillermo Beades, a partner in Frier Levitt's Healthcare Litigation Department. The $2.8 billion settlement will be split between about 3 million class action members. It is the largest settlement for a healthcare antitrust case."
"While Blue Cross Blue Shield is content with the settlement, many providers are not. About 6,500 providers have opted out of the settlement. Dozens have also filed their own lawsuits against the insurer, including large health systems like Providence, CommonSpirit Health, WellSpan and Bon Secours Mercy Health. A spokesperson for Providence told MedCity News that it decided to opt out of the settlement because it isn't reflective of the scale of anticompetitive harm the system experienced by Blue Cross. "We are pursuing separate individual claims because our estimated damages are many, many times higher than what was offered under the class settlement and we want to put an end to all of the Blues' anticompetitive and harmful practices," the spokesperson who declined to be named said."
"The insurer said in a statement to MedCity News that it is "pleased with the Court's Order approving the settlement we reached to resolve the claims in this case.""
A judge approved a $2.8 billion class-action settlement resolving a 2012 lawsuit in which providers alleged Blue Cross Blue Shield and affiliated plans underpaid providers through anticompetitive conduct. Providers claimed Blue Cross divided the U.S. into "service areas" and agreed not to compete, and fixed prices, deflating reimbursements via multistate collusion. The settlement will be split among about 3 million class members and represents the largest healthcare antitrust payout. The insurer called the approval satisfactory. Roughly 6,500 providers opted out and dozens of large health systems have filed separate suits, saying estimated damages exceed the class award.
Read at MedCity News
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