BCBS Anti-Trust Case in the News

The Alabama BlueCross BlueShield anti-trust case has received some press in the local news this week. The case has been consolidated into an MDL in front of Judge Proctor, in Birmingham, Alabama. Although the case has garnered plenty of local interest, it has ramifications nationwide. The story is mostly about the provider-side of the lawsuit. There is a separate, although closely related, subscriber track. Pittman, Dutton & Hellums is representing plaintiffs on the subscriber side. 

To read the story, click here.

This is not the only bad press BlueCross BlueShield has received lately from the local media. The non-profit was recently ridiculed for ramming a bill through the state legislature which made executive pay confidential. In the past, the mega-insurer had to disclose the salaries of its executives. Not anymore.

To read that story, click here.

MDL Judge Denies Blue Cross Blue Shield Motion To Dismiss

In what may be a landmark case for the health insurance industry, Judge Proctor of the U.S. District Court for the Northern District of Alabama, issued an Order denying Blue Cross/Blue Shield's Motion to Dismiss in early June. The cases, which have been consolidated into an MDL under Judge Proctor, were brought by providers and subscribers claiming Sherman Act anti-trust violations by Blue Cross/Blue Shield. 

Although this case is a long way from any final decision from Judge Proctor (not to mention anticipated appeals by either or both sides), his ruling stymied the Defendants' attempts to have the case thrown out before any real litigation took place. Now that the ruling has come out, discovery can proceed, which will surely by expansive and contested. 

To read Judge Proctor's Memorandum Order, click HERE.

For an article posted on AL.com which covers the story, click on the link below: 

http://www.al.com/news/index.ssf/2014/07/blue_cross_lawsuit_could_have.html#incart_river

For a more in depth discussion of the legal defenses and the Order, click on the link below:

http://www.lexology.com/library/detail.aspx?g=711a75a2-b8c5-401a-a64c-b339523de9a1

Blue Cross/Blue Shield Alabama Anti-Trust Litigation in the News

The Birmingham News reported on the current state of the Blue Cross/Blue Shield of Alabama Anti-Trust Litigation this week, which was posted on al.com. Chris Hellums of our firm, Pittman, Dutton & Hellums, filed one of the first suits in Alabama. 

Some of the more interesting statistics and figures reported on Blue Cross/Blue Shield of Alabama include:

      -total assets of $2.4 billion at the end of 2011

      -a market share of 90 percent

      -Blue Cross' rates aren't subject to automatic review by the Insurance Department

      -net income of $257 million in 2011

See the link below for the full article:

http://blog.al.com/businessnews/2012/08/blue-cross_blue_shields_28_bil.html