United States v. Blue Cross Blue Shield of Michigan
United States District Court for the Eastern District of Michigan
809 F.Supp.2d 665 (2011)
Blue Cross Blue Shield of Michigan (BCBS) (defendant), the largest provider of health insurance products in Michigan, required the inclusion of most favored nation (MFN) clauses in its agreements with various hospitals throughout the state. The MFNs required a hospital to charge BCBS’ competitors more than what BCBS paid, often up to 40 percent higher, or at prices not less than BCBS paid. In some cases, a hospital that refused to enter into an agreement containing an MFN clause was paid up to 16 percent less by BCBS than if the agreement had contained an MFN clause. The United States and the State of Michigan (plaintiffs) filed suit against BCBS in federal district court alleging that the MFN clauses violated § 1 of the Sherman Act and §§ 1 and 2 of the Michigan Antitrust Reform Act. Plaintiffs argued that BCBS’ use of the MFN clauses caused many hospitals to raise its prices to competitors or to demand prices that were too high to allow competitors to effectively compete in the marketplace. BCBS filed a motion to dismiss the complaint.
Rule of Law
Holding and Reasoning (Hood, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 166,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 13,800 briefs, keyed to 187 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.