ARTICLE · 22 NOVEMBER 2010
November Antitrust Bulletin
On Oct. 18, 2010, the U.S. Department of Justice, in a joint action with the Michigan attorney general, filed a civil antitrust action against Blue Cross Blue Shield of Michigan alleging that the insurer's use of most favored nation clauses has stifled competition and raised prices on healthcare services and insurance.
United StatesAntitrust/Competition Law
Department of Justice Targets Most Favored Nation Clauses
On Oct. 18, 2010, the U.S. Department of Justice, in a joint
action with the Michigan attorney general, filed a civil antitrust action against Blue Cross Blue
Shield of Michigan alleging that the insurer's use of most
favored nation clauses has stifled competition and raised prices on
healthcare services and insurance. Most favored nation clauses in
agreements between insurers and healthcare providers guarantee that
no rival can get a better rate than the insurer. Though this
lawsuit involves the healthcare industry, it could have important
implications for any business that uses most favored nation
clauses.
Knowledge of Price Discrimination in Shipping Policy May
Trigger Liability
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