The planned settlement includes ending a requirement that two-thirds of each Blue Cross Blue Shield company's national revenue comes from Blue-branded businesses. (Photo: Shutterstock)
National employers would find it easier to obtain Blue Cross Blue Shield coverage through insurers other than Blues in their headquarters' state under a proposed anti-trust settlement, the Wall Street Journal is reporting. The agreement would give small, one-state Blue insurers access to mega-corporations for the first time.
The openings come as sources told the paper the Blue Cross Blue Shield Association and lawyers representing tens of millions of Americans covered by over one million individual and corporate policyholders have tentatively agreed to a $2.7 billion anti-trust settlement where the Blues would pay to extinguish claims they jointly worked to stifle competition and raise prices. General Motors, Microsoft and Walmart are among the major businesses participating in the antitrust action as plaintiffs.
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U.S. District Judge David Proctor of Birmingham, Alabama, who has had the legal battle before him since 2013 would have to approve the settlement.
The Blue Cross vendors in the settlement include Anthem and Health Care Service Corp. The planned settlement includes ending a requirement that two-thirds of each Blue Cross Blue Shield company's national revenue from health plans and related services come from Blue-branded businesses, according to the WSJ article.
That change could increase competition among the companies if they choose to expand their non-Blue lines of business in one another's geographies, experts told the WSJ. The piece notes the settlement has received the blessing of the Blue Cross Blue Shield Association with okays from the 36 member firms that comprise it still needed.
Commenting on the potential impacts of the settlement, Tim Greaney, a professor at the University of California Hastings College of the Law said in the article it removes anti-competitive mechanisms but the Blues' licensing setup—the main focus of the litigation—would continue to limit direct competition among the insurers.
Deep Banerjee, an analyst with S&P Global Ratings, said the rule shifts would likely hold advantages for larger Blue companies, such as Anthem, which might be better positioned to win national accounts than smaller Blue plans because of its scale and lower costs.
The rule shifts would likely hold advantages for larger Blue companies, such as Anthem, which might be better positioned to win national accounts than smaller Blue plans because of its scale and lower costs, said Deep Banerjee, an analyst with S&P Global Ratings.
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