Ford Motor Co. filed a lawsuit against Blue Cross Blue Shield Association in a US court, accusing it of engaging in a price-fixing conspiracy that led to the carmaker paying exorbitant prices for health insurance for its employees.
Ford filed a complaint against the insurer and its regional office in Michigan, alleging that they illegally divided apart portions of the nation in an effort to lessen competition with one another and generate astronomical profits.
Ford Takes on Blue Cross Blue Shield
The claims made by Ford, which has more than 170,000 employees globally, are connected to a $2.7 billion agreement that the Blue Cross Blue Shield Association and its thirty-two member businesses made with corporate and individual policyholders in federal court in Alabama in 2020.
Ford chose not to participate in that settlement, which is currently being challenged at the 11th US for the purpose of pursuing its own claims, Circuit Court of Appeals.
The appeals court consented to expedite its review of the settlement. Defendant Blue Cross Blue Shield Association’s representative declined to comment on ongoing litigation.
Blue Cross Blue Shield of Michigan’s spokesperson likewise declined to respond.
A Ford lawyer declined to answer to questions about the case after the automaker failed to respond to a message.
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Alleged Anti Competitive Scheme and Seeking Damages
Ford claimed in its 40-page complaint that it was denied the chance to purchase health insurance products and services from a lower cost competitor and/or at a price set by the free market due to an alleged strategy to limit competition among Blue Cross Blue Shield groups.
The lawsuit seeks to bar Blue Cross Blue Shield’s alleged anticompetitive conduct, and it also seeks triple damages and other remedies.
Ford said it had spent more than $500 million on premiums since 2009 for “fully insured” products for employees in designated areas in the state, according to the complaint.
According to the lawsuit filed by Ford, Blue Cross Blue Shield of Michigan has 4.5 million enrollees, making it the ninth-largest insurance in the nation.
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