By Mike Scarcella
(Reuters) – Ford Motor Co sued Blue Cross Blue Protect Affiliation in U.S. courtroom on Wednesday, accusing it of a price-fixing conspiracy that induced the automaker to pay inflated prices for medical health insurance merchandise for its staff.
The lawsuit Ford filed in Detroit federal courtroom accused the insurer and its regional Michigan department of unlawfully dividing up elements of the nation in a scheme to scale back competitors with one another to be able to drive “astronomical earnings.”
The allegations from Ford, using greater than 170,000 staff worldwide, relate to a $2.7 billion settlement that Blue Cross Blue Protect Affiliation and its three dozen member corporations reached in 2020 with company and particular person coverage holders in Alabama federal courtroom.
Ford opted out of that settlement, which is now on attraction on the Atlanta-based eleventh U.S. Circuit Court docket of Appeals, to be able to pursue its personal claims. The appeals courtroom agreed to fast-track its consideration of the settlement.
A spokesperson for defendant Blue Cross Blue Protect Affiliation declined to touch upon pending litigation. A consultant from Blue Cross Blue Protect of Michigan additionally declined to remark.
Ford didn’t instantly reply to a message searching for remark concerning the lawsuit, and a lawyer for the corporate declined to remark.
Within the 40-page grievance, Ford mentioned the alleged scheme to curb competitors amongst Blue Cross Blue Protect organizations disadvantaged the car producer of “the chance to buy medical health insurance services and products from a decrease value competitor and/or at a worth set by the free market.”
The lawsuit seeks to bar Blue Cross Blue Protect’s alleged anticompetitive conduct, and it additionally seeks triple damages and different treatments.
Ford mentioned it had spent greater than $500 million on premiums since 2009 for “totally insured” merchandise for workers in designated areas within the state, in keeping with the grievance.
Ford’s lawsuit mentioned Blue Cross Blue Protect of Michigan is the nation’s ninth largest insurer based mostly on its 4.5 million enrollees.
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The case is Ford Motor Co v. Blue Cross Blue Protect of Michigan Mutual Insurance coverage Firm and Blue Cross Blue Protect Affiliation, U.S. District Court docket for the Japanese District of Michigan, No. 2:23-cv-11286-LVP-EAS.
For Ford: J. Travis Mihelick of Dinsmore & Shohl
For Blue Cross: No look but
(Reporting by Mike Scarcella; enhancing by Leigh Jones)