Ford Accuses Blue Cross of Price Fixing to Inflate Profits

August 1, 2023
Hall Benefits Law, LLC

Ford Motor Company has filed suit against Blue Cross Blue Shield, accusing the health insurer of conspiring to fix prices to reduce competition and violating antitrust laws. More specifically, Ford claims that the Blue Cross scheme to reduce competition between entities deprived it of the opportunity to purchase health insurance coverage from lower-cost competitors or at costs determined by the free market.

As a result of its actions, Ford contends, Blue Cross enjoyed excessive profits and paid its executives extravagant salaries. Ford seeks an order prohibiting the company’s anticompetitive conduct, triple damages, and other remedies.

Ford spent more than $500 million on insurance plans between 2009 and 2013. The company also has spent more than $150 million on fees for the administration of self-insured plans since 2013. Blue Cross Blue Shield of Michigan is the ninth largest insurer in the country, with a reported 4.5 million plan members.

The Ford litigation is related to the 2022 $2.7 billion antitrust settlement in Alabama federal court between Blue Cross and several large companies, including Home Depot. In that lawsuit, the plaintiffs claimed that Blue Cross insurers violated antitrust laws by limiting competition in selling health insurance and administering self-insured plans. Blue Cross countered that its actions lowered health care costs for all. Ford opted out of the settlement to pursue a separate lawsuit against Blue Cross.

The case is Ford Motor Company v. Blue Cross Blue Shield Michigan Mutual Insurance Company and the Blue Cross Blue Shield Association, Case 2:23-cv-11286-LVP-EAS.

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Hall Benefits Law, LLC

HBL offers employers comprehensive legal guidance on benefits in mergers and acquisitions, Employee Stock Ownership Plans (ESOPs), executive compensation, health and welfare benefits, healthcare reform, and retirement plans. We counsel a wide spectrum of clients including small, mid-sized, and large companies, 401(k) investment advisors, health insurance brokers, accountants, attorneys, and HR consultants, just to name a few. HBL is passionate about advising clients, and we are dedicated to our mission: to provide comprehensive, personalized, and practical ERISA and benefits legal solutions that exceed client expectations.

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