Health Care Law Blog
On August 17, 2012, the Department of Justice (“DOJ”) and the Federal Trade Commission (“FTC”) announced that they will hold a joint public workshop addressing insurers’ use of most-favored-nation clauses (“MFNs”). The all-day workshop will be held on September 10, 2012 in Washington DC and will be in-person, free and open to the public. At the workshop, the agencies intend “to explore the use of MFN clauses and the implications for antitrust enforcement and policy.” The workshop will also include a series of panel discussions examining the legal treatment of MFNs, the economic theories concerning MFNs, and their impact upon the health care industry.
In October of 2010, the DOJ put its spotlight on MFNs by filing a civil antitrust lawsuit against Blue Cross Blue Shield of Michigan (“BCBSM”). In its lawsuit, the DOJ alleged that BCBSM’s use of MFNs raises hospital prices, prevents others insurers from entering the marketplace and discourages discounts. The DOJ continues to aggressively pursue the lawsuit, which has served as the basis for various class action lawsuits against BCBSM and health care providers. The announcement of the workshop again highlights the increased scrutiny that regulators have placed upon third party payors’ use of MFNs and will likely cover the legal theories at the forefront of the litigation currently taking place in Michigan.
For more information on the antitrust implications of MFNs, please contact Jennifer Kildea Dewane at (517) 371-8211 or by using the form below.
