Mount Nittany Health has filed a federal lawsuit against the Blue Cross Blue Shield Association and its affiliated insurers. The lawsuit claims that the insurers have violated antitrust laws. The 148-page lawsuit was filed in the U.S. Middle District Court of Pennsylvania.
It is part of a series of lawsuits by healthcare providers nationwide. The lawsuits accuse the insurers of working together to limit competition and underpay healthcare providers. The lawsuit says that Blue Cross Blue Shield insurers, including Highmark, Capital, and Independence, have agreed to divide geographic markets.
It claims these agreements prevent competition and keep prices fixed. As a result, healthcare providers have been paid much less than they would in a competitive market. The agreements reportedly stop insurers from getting customers or negotiating prices outside their assigned areas.
Federal antitrust lawsuit filed
This limits market expansion and reduces competitive pressure. The lawsuit argues that more competition would lead to higher payments to providers.
The Blue Cross Blue Shield insurers provide coverage to about 100 million Americans. The lawsuit accuses them of using their size and name recognition to keep prices below competitive levels, leaving providers with little power to negotiate.
The lawsuit claims that providers risk losing all Blue Cross Blue Shield patients if they leave the local Blue’s network. Mount Nittany Health is seeking triple the amount of unspecified damages it has suffered. It also wants interest, attorney fees, and an order to stop the Blues from continuing their alleged anticompetitive practices.
This lawsuit adds to the growing number of similar claims against Blue Cross Blue Shield insurers nationwide. It highlights ongoing concerns about antitrust violations in the healthcare insurance market.
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