Michigan Health Insurer Seeks Dismissal of U.S. Suit

Blue Cross Blue Shield of Michigan asked a federal judge on Friday to dismiss the Justice Department’s antitrust lawsuit accusing it of driving up prices for patients and other insurers. The Justice Department filed the suit Oct. 18, saying the company’s clauses with health care providers guaranteed that competing health care plans could not obtain better rates and, as a result, discouraged competition. Blue Cross said Friday its antitrust exemption served the public goal of providing health coverage at reasonable cost and was supported by previous Supreme Court decisions. Michigan Blue Cross’s vice president and chief lawyer, Jeffrey Rumley, said the suit failed to recognize that the Michigan Blue Cross plan was enabled by state law to provide health care across the state at reasonable costs. The Justice Department said it would file a response to the motion.