Conn. Attorney General Informs Sec. Sebelius of Anthem's 'Most-Favored' Clauses

Connecticut's Attorney General Richard Blumenthal notified Department of Health and Human Services Secretary Kathleen Sebelius of "most-favored nation" clauses included in many Anthem Blue Cross & Blue Shield contracts in his state, according to a report in the Hartford Courant.

The clauses require hospitals and physicians to provide Anthem with discounts as favorable, if not more, than any competitor, according to the report.

The clauses recently gained press when it was revealed that hospitals, but not individual physicians, could receive waivers that would allow them to participate in the state-sponsored health insurance plan without being forced to offer Anthem the same rates.

Mr. Blumenthal notified Sec. Sebelius of his ongoing investigation into Anthem's potential anti-competitive practices and said that these practices could have "national implications" and warrant a federal investigation, according to the report

Officials from Anthem noted that the insurer "makes every effort to obtain fair market rates for our customers," according to the report. An aging population and more uninsured patients were cited as reasons for rising insurance rates by Anthem.

Read the Courant's report on Anthem's "most-favored nation" clauses.