Ford Motor Co. sued Blue Cross Blue Shield Association in U.S. courtroom on Wednesday, accusing it of a price-fixing conspiracy that triggered the automaker to pay inflated prices for medical insurance merchandise for its workers.
The lawsuit Ford filed in Detroit federal courtroom accused the well being insurer and its regional Michigan department of unlawfully dividing up elements of the nation in a scheme to scale back competitors with one another with a view to drive “astronomical profits.”
The allegations from Ford, using greater than 170,000 staff worldwide, relate to a $2.7 billion settlement that Blue Cross Blue Shield Association and its three dozen member corporations reached in 2020 with company and particular person coverage holders in Alabama federal courtroom.
Ford opted out of that settlement, now on attraction on the Atlanta-based eleventh U.S. Circuit Court of Appeals, with a view to pursue its personal claims. The appeals courtroom agreed to fast-track its consideration of the settlement.
A spokesperson for defendant Blue Cross Blue Shield Association declined to touch upon pending litigation. A consultant from Blue Cross Blue Shield of Michigan additionally declined to remark.
Ford didn’t instantly reply to a message in search of remark concerning the lawsuit, and a lawyer for the corporate declined to remark.
In the 40-page grievance, Ford mentioned the alleged scheme to curb competitors amongst Blue Cross Blue Shield organizations disadvantaged the automobile producer of “the opportunity to purchase health insurance products and services from a lower cost competitor and/or at a price set by the free market.”
The lawsuit seeks to bar Blue Cross Blue Shield’s alleged anticompetitive conduct, and it additionally seeks triple damages and different cures.
Ford mentioned it had spent greater than $500 million on premiums since 2009 for “fully insured” merchandise for workers in designated areas within the state, in keeping with the grievance.
Ford’s lawsuit mentioned Blue Cross Blue Shield of Michigan is the nation’s ninth largest insurer primarily based on its 4.5 million enrollees.
Source: www.autonews.com