A US district judge gave preliminary approval for a US$2.7 billion settlement from Blue Cross Blue Shield (BCBS) insurers. The settlement is for an antitrust lawsuit that accuses the companies of conspiring to divide markets and avoid directly competing with each other.
In an order, US District Judge R. David Proctor in the Northern District of Alabama gave early blessing to the settlement, which would resolve the claims in the original lawsuit brought by BCBS plan members.
The claims were first brought in 2012 under a class-action lawsuit filed on behalf of health plan members. The lawsuit alleged that anticompetitive behavior among BCBS plans has led to higher prices for members.
Under the proposed settlement, Blue insurers would ditch a rule that places limits on non-Blue generated revenue. Specifically, the insurers would drop a rule that requires two-thirds of national net revenues from health plans and related services to come from Blue-branded products, reported the Wall Street Journal.
Read more on the settlement details here.
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