Blue Cross Blue Shield of Michigan settles one suit, but faces more litigation

Blue Cross Blue Shield of Michigan has settled a lawsuit with Aetna, but must now resolve another with Health Alliance Plan of Michigan. Both lawsuits deal with charging agreements with various Michigan hospitals, reports Crain's Detroit Business. The issue at hand is over the "most favored nation" contracts Blue Cross adopted more than eight years ago with hospitals. The contracts allow hospitals to bill the insurer at a rate at least equal to any other insurer. Another contract, known as the "most favored nation plus," also caused more than 20 of the state's 131 hospitals to charge competing insurers at a premium. Litigation remains regarding the way insurers reimburse hospitals. Article

 

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