The Blue Cross Blue and Blue Shield Association (BCBS) and the health plan subscribers who brought an antitrust challenge to its business model got preliminary approval from a federal judge in Alabama for a US$2.67 billion settlement, reported Bloomberg Law.
Judge R. David Proctor gave his tentative blessing to the agreement, which would resolve the subscribers’ claims in the US District Court for the Northern District of Alabama. The suit accuses dozens of independent insurers affiliated with BCBS of illegally carving up the US health insurance market into regional “service areas” to avoid having to compete with one another.
The case had been brought on behalf of more than 1 million individual and corporate policyholders, whose policies covered tens of millions of Americans.
They alleged that the member companies violated the Sherman Act and other antitrust laws by, among other things, dividing up health insurance markets to avoid competing with each other.
Blue Cross Blue Shield stated its member companies cover more than 109 million Americans, or roughly one-third of the US population, including at major employers such as General Motors, Microsoft, and Walmart.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Canada Targets Tech Titans with New Digital Tax in 2024
Apr 17, 2024 by
CPI
EU Privacy Watchdog Calls for Meta to Offer Ad-Free Option
Apr 17, 2024 by
CPI
Japan’s Antitrust Overhaul Targets Tech Titans Like Apple
Apr 17, 2024 by
CPI
Ryanair to Amplify Italian Presence Despite Antitrust Issues
Apr 17, 2024 by
CPI
FTC to Vote on Ban on Noncompete Clauses in Employment Contracts
Apr 17, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – China Edition – Year of the Dragon
Apr 16, 2024 by
CPI
Review Logic and Rules for Concentrations of Undertakings that Do Not Meet the Standard of Notification
Apr 16, 2024 by
CPI
China’s Review of Semiconductor Transactions
Apr 16, 2024 by
CPI
Key Challenges and Tips for Merger Control Filing in China for Listed Companies
Apr 16, 2024 by
CPI
Key Point Review: China SPC Antitrust Judgments in 2023
Apr 16, 2024 by
CPI