Cohen Milstein Sellers & Toll PLLC is representing Michigan Regional Council of Carpenters Employee Benefits Fund, Abatement Workers National Health and Welfare Fund, and Monroe Plumbers & Pipefitters Local 671 Welfare Fund, and other purchasers of hospital healthcare services in a lawsuit against Blue Cross Blue Shield of Michigan ("BCBSM") regarding its contracts with hospitals. The suit alleges that BCBSM entered into anticompetitive agreements with hospitals throughout Michigan that guaranteed BCBSM would receive rates at least as favorable as other insurers, and in many cases more favorable rates. These agreements inflated the reimbursement rates paid by rival healthcare insurers and their customers in Michigan. In exchange for these guarantees, BCBSM agreed to pay the hospitals higher reimbursement rates for medical services, forcing its own insureds and self-insureds to overpay for hospital healthcare.
Cohen Milstein was appointed co-lead counsel on May 29, 2012. On November 30, 2012, the district court denied BCBSM’s motion to dismiss, finding that Plaintiffs had alleged “plausible claims of injury.” Thereafter, the parties engaged in two years of extensive discovery that included 169 depositions, millions of pages of documents, and an almost unprecedented volume of transactional data.
The parties reached a settlement on June 23, 2014, while Plaintiffs’ motion for class certification was pending. The settlement created a $29,990,000 fund for the benefit of the Settlement Class. The district court preliminarily approved the settlement on June 26, 2014. Final approval is currently pending.
The case is The Shane Group, Inc. v. Blue Cross Blue Shield of Michigan, No. 10-cv-14360 (E.D. Mich.). For more information, visit www.michiganhospitalpaymentslitigation.com.