The DOJ and Michigan are challenging Blue Cross Blue Shield of
Michigan's most favored nations contracts under federal and
Michigan antitrust law.
On October 18, 2010, the U.S. Department of Justice (DOJ),
together with the Michigan Attorney General, brought a civil
antitrust action against Blue Cross Blue Shield of Michigan (BCBS),
alleging that BCBS has used "most favored nation" (MFN)
clauses in contracts with Michigan hospitals to inhibit competition
from other insurers and raise its rivals' costs. (United
States v. Blue Cross Blue Shield of Michigan, No.
2:10-cv-14155-DPH-MKM, Oct. 18, 2010.) MFN clauses generally
require a party to do business with another party on terms no less
advantageous than the terms on which it deals with others.
BCBS's widespread use of MFN clauses, the DOJ alleges, raises
prices for commercial health insurance in Michigan.
