• Department of Justice and Private Plaintiffs Challenge Blue Cross Blue Shield Of Michigan’s “Most Favored Nation” Provisions
  • November 5, 2010
  • Law Firm: Kaye Scholer LLP - New York Office
  • On October 18, 2010, the Department of Justice (“DOJ”) filed suit against Blue Cross Blue Shield of Michigan (“BCBS”) to enjoin it from using most-favored-nation (“MFN”) clauses in its contracts with hospitals, and to prevent enforcement of those clauses. The DOJ alleged that the MFN clauses in question reduce competition for the sale of health insurance. According to the DOJ, these clauses also have the effect of excluding BCBS competitors from certain markets and raising prices for health insurance for Michigan residents. United States v. Blue Cross Blue Shield of Michigan, 2:10-cv-14155-DPH-MKM (E.D. Mich. Oct. 18, 2010).