Law360 (July 28, 2021, 7:56 PM EDT) — Health care providers accusing Blue Cross Blue Shield organizations of thwarting competition by carving up the national market into service areas and refusing to compete against each other are asking an Alabama federal court to revisit the insurers’ argument that it is a single entity.
In a motion for summary judgment filed Tuesday, health care providers argued BCBS is multiple entities working to manipulate the market. If granted, the judgment would wipe out one of BCBS’ defenses and add leverage to their providers’ arguments accusing it and the array of affiliated insurers of conspiring to divide the market among themselves and not compete with one another through a series of trademark licensing agreements and other arrangements.
“Potential competitors never act as a single entity when they agree to insulate themselves from competition by allocating territory or restricting output,” the providers said. “The Blues, who resisted being called a single entity until this case was filed, are no exception.”
The provider plaintiffs, who are still pursuing their track of the multidistrict litigation after Blue Cross Blue Shield subscribers settled their own claims last year for a $2.67 billion class payout, are trying to secure at least $15 billion after trebling for antitrust damages in the Alabama market alone.