Blue Cross Blue Shield Association and its Michigan affiliate must face a lawsuit from Ford Motor accusing them of artificially inflating the automaker’s costs for health insurance, a U.S. judge has ruled.
U.S. District Judge Linda Parker in a ruling on Saturday in Detroit federal court said Ford (F.N) had adequately alleged for now that it was overcharged for commercial health insurance products purchased from Blue Cross.
Ford last year alleged Blue Cross organizations violated antitrust law by conspiring to fix prices and not compete with each other, depriving the Detroit-based manufacturer 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 judge said Ford could pursue claims over higher premiums from the purchase of health insurance and higher costs for an “administrative services only” product. The judge’s ruling narrowed the scope of Ford’s allegations based on its purchase of administrative services from Blue Cross.
Blue Cross and its Michigan affiliate declined to comment on Monday. They have denied any wrongdoing.
Ford did not immediately respond to a request for comment.
Ford employs more than 170,000 workers and spends hundreds of millions of dollars on insurance premiums and other health-related costs, according to its lawsuit.
The automaker’s claims relate to long-running litigation in Alabama from companies, individuals and others accusing Blue Cross of a price-fixing conspiracy.
Ford was among other major U.S. companies that opted out of a $2.7 billion dollar settlement in 2020 in Alabama federal court.
An appeals court last year upheld the settlement, but one class member, Home Depot, which is challenging the deal, has asked the U.S. Supreme Court to take up the dispute. A separate class action from healthcare providers is seeking billions of dollars in damages.
In its lawsuit, Ford said it had spent more than $500 million on premiums since 2009 for certain Blue Cross products. Ford's lawsuit seeks triple damages.
The Blue Cross defendants in August argued Ford had not shown that the insurers blocked any competing company from selling insurance products. They also argued that Ford’s claims were outside of the relevant time frame in antitrust law to file a lawsuit.
Parker has set a hearing for April 25 to talk about scheduling matters.
The case is Ford Motor Co v. Blue Cross Blue Shield of Michigan Mutual Insurance Company and Blue Cross Blue Shield Association, U.S. District Court for the Eastern District of Michigan, No. 2:23-cv-11286-LVP-EAS.
For Ford: J. Travis Mihelick of Dinsmore & Shohl
For Blue Cross Blue Shield Association: Karin DeMasi of Cravath, Swaine & Moore
For Blue Cross Blue Shield of Michigan: Todd Stenerson of Shearman & Sterling
Read more:
US judge says Blue Cross must face Alabama health providers’ price-fixing claims
Ford Motor Co's health insurance antitrust suit filed too late, Blue Cross argues
Ford Motor Co sues Blue Cross Blue Shield in antitrust case over ‘astronomical’ profit
