BY: James M. Burns
Williams Mullen (North Carolina and Virginia, USA)
Justice Department Halts Blue Cross of Montana’s Expansion Plans Based Upon Competitive Concerns
In early November, the DOJ Antitrust Division announced the filing of an antitrust lawsuit against Blue Cross of Montana, which is the largest health insurer in Montana.
The suit alleged that a proposed agreement Blue Cross had struck with five Montana hospitals for them to transfer their employees’ health insurance coverage from New West, a rival health insurer owned by the hospitals, to Blue Cross would have anticompetitive effects in the Montana health insurance market. In its complaint, the Antitrust Division alleged not only that the transaction would impermissibly increase Blue Cross’s market share, but, more importantly, that it would diminish the hospitals’ continued interest in having New West serve as a strong competitive alternative to Blue Cross. Ultimately, the Antitrust Division contended, the transaction would lead to New West’s collapse, which would reduce the number of commercial insurers operating in Montana from three to two, and permit Blue Cross -- according to the Antitrust Division -- to “increase prices and reduce the quality of its commercial health-insurance plans.” Click here to read entire article.
