Suit Claims Alabama Pays Higher Insurance Rates Due to “Anticompetitive Conduct” by BCBS
MONTGOMERY—A Federal class-action/anti-trust suit against Blue Cross BlueShield of Alabama and 37 others is being heard in Birmingham. The suit alleges that “The Individual Blue Plans’ anticompetitive conduct has also resulted in higher premiums for their enrollees for over a decade,” and this has led to, “inflated premiums (that) would not be possible if the market for health insurance in these Individual Blue Plans’ Service Areas were truly competitive.”
Subscribers’ attorneys say this has resulted in the people of Alabama paying higher rates for health insurance. Co-lead attorney Michael Hausfeld, in a phone interview with The Alabama Political Reporter said, “Restrictions by the Blues to prevent certain competition from coming into Alabama and offering more coverage or better coverage at a lower cost,” has been responsible for subscribers paying more for policies.
At issue, according to Hausfeld, is whether the insurance subscriber’s rates were higher in Alabama than they should have been because of competitive restrictions.
“They are charging rates in Alabama, according to our complaint, higher than subscribers would be able to achieve if there were greater competition,” said Hausfeld.
Read more: http://www.alreporter.com/suit-claims-alabama-pays-higher-insurance-rates-due-to-anticompetitive-conduct-by-bcbs/