Blue Cross Michigan Hit With 'Most Favored' Action

Law360, New York (November 1, 2010, 3:08 PM EDT) -- Echoing a similar suit launched by the U.S. Department of Justice, Blue Cross Blue Shield of Michigan has been hit with a proposed class action alleging the insurer's use of most favored nation clauses in its contracts with hospitals and other health care providers has improperly limited competition and raised health care costs.

In the complaint filed Friday in the U.S. District Court for the Eastern District of Michigan on behalf of insurance buyers, the plaintiffs argued that BCBSM has improperly wielded most favored nation clauses...
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