The U.S. Department of Justice on Monday asked a U.S. District judge to approve its agreement with Blue Cross Blue Shield of Montana over antitrust concerns, according to a Great Falls Tribune report.
BCBS of Montana and the hospitals were under investigation after the insurer allegedly paid $26 million to six hospitals in return for their purchasing BCBS coverage for their employees, instead of coverage offered by New West, a health insurer owned by the six hospitals. The hospitals include: Billings Clinic, Bozeman Deaconess Hospital, Community Medical Center, St. Peter's Hospital, Northern Montana Hospital and Benefis Healthcare. Benefis Healthcare was not included in the settlement because it had already purchased BCBS coverage for its employees.
The DOJ claim against BCBS argued that the loss of the hospitals' employee policies by New West would have put the insurer out of business, which could lead to an increase in prices.
Under the proposed settlement, if a separate insurer acquired New West's commercial business, the DOJ agreed to allow the hospitals to enroll their employees in BCBS plans. PacificSource Health Plans finalized a deal to acquire this portion of New West's business on Feb. 29, prompting the DOJ to ask a judge to finalize the deal.
BCBS of Montana and the hospitals were under investigation after the insurer allegedly paid $26 million to six hospitals in return for their purchasing BCBS coverage for their employees, instead of coverage offered by New West, a health insurer owned by the six hospitals. The hospitals include: Billings Clinic, Bozeman Deaconess Hospital, Community Medical Center, St. Peter's Hospital, Northern Montana Hospital and Benefis Healthcare. Benefis Healthcare was not included in the settlement because it had already purchased BCBS coverage for its employees.
The DOJ claim against BCBS argued that the loss of the hospitals' employee policies by New West would have put the insurer out of business, which could lead to an increase in prices.
Under the proposed settlement, if a separate insurer acquired New West's commercial business, the DOJ agreed to allow the hospitals to enroll their employees in BCBS plans. PacificSource Health Plans finalized a deal to acquire this portion of New West's business on Feb. 29, prompting the DOJ to ask a judge to finalize the deal.