The U.S. justice department sued Blue Cross Blue Shield of Michigan on Monday, saying that they violated antitrust laws and because it is believed to be forcing hospitals to charge higher prices to Blue Cross rivals. The lawsuit took direct aim at contract clauses stipulating that no insurance companies could obtain better rates from the providers than Blue Cross. The lawsuit also states that Blue Cross bought protection from competition by paying higher prices to certain hospitals. In some instances people from other insurers had to pay up to forty percent higher prices. Blue cross is denying these allegations by saying that it does not make good business sense to do this, but at the same time they made over $10 billion in revenue last year and certainly have the money to do this.
Matt Rister
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