A lawsuit alleging that UnitedHealthcare and MultiPlan conspired to reduce reimbursement rates for a New York anesthesia services provider has been tossed by a federal judge.

“I find that plaintiff has again failed to plead an antitrust injury,” Judge Hector Gonzalez of the U.S. District Court for the Eastern District of New York ruled in an opinion issued on Monday. “Plaintiff’s allegations fail to demonstrate harm to competition or the kind of exclusionary conduct necessary to establish antitrust injury.”

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Long Island Anesthesiologists claimed that UnitedHealthcare and MultiPlan conspired to lower rates by more than 80% after the federal No Surprises Act took effect in January 2022. The lawsuit alleged that MultiPlan used repricing tools and aggressive negotiation tactics to pressure providers into accepting reduced payments, while acting on behalf of UnitedHealthcare.

Although Gonzalez previously dismissed the case, he allowed the plaintiffs to refile an amended complaint. However, he ruled this week that even with the additional allegations, the plaintiff “still fails to plausibly allege” that the companies entered into an unlawful agreement. He went on to say that the amended complaint “spans 331 paragraphs but fails to include a single factual allegation that plausibly suggests United and MultiPlan conspired to restrain trade.” The judge also denied Long Island Anesthesiologists an opportunity to amend the complaint again, concluding that further attempts would be futile. 

Last August, a superior court judge in California dismissed a lawsuit from a bankrupt health system that accused MultiPlan of entering into an agreement with major payers to artificially reduce out-of-network reimbursement for providers. Despite these rulings, however, MultiPlan still is litigating several lawsuits alleging that it colluded with commercial payers in a price-fixing scheme to underpay providers.

AdventHealth filed a legal action against MultiPlan last year, and Allegiance Health Management and Community Health Systems sued this year after the American Hospital Association urged the Department of Labor to open a new investigation into the company. In 2022, the AMA joined a class-action lawsuit against Cigna that claimed the insurer underpaid for claims filed by providers in the MultiPlan network. The company has countered that the lawsuits are “without merit and would ultimately increase prices for patients and employers.” 

In February, MultiPlan announced that it was rebranding with the new name Claritev. According to its website, “the company plays a significant role in delivering access to care through provider networks, identifying health care cost savings, lowering out-of-pocket costs and reducing or eliminating balance bills for patients across the United States.”

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Alan Goforth

Alan Goforth is a freelance writer in suburban Kansas City. In addition to freelancing for several publications, he has written a dozen books about sports and other topics.