sued Blue Cross Blue Shield Association in U.S. court on Wednesday, accusing it of a price-fixing conspiracy that caused the automaker to pay inflated costs for health insurance products for its employees.Ford filed in Detroit federal court accused the insurer and its regional Michigan branch of unlawfully dividing up parts of the country in a scheme to reduce competition with each other in order to drive "astronomical profits.
Ford opted out of that settlement, which is now on appeal at the Atlanta-based 11th U.S. Circuit Court of Appeals, in order to pursue its own claims. The appeals court agreed toA spokesperson for defendant Blue Cross Blue Shield Association declined to comment on pending litigation. A representative from Blue Cross Blue Shield of Michigan also declined to comment.
In the 40-page complaint, Ford said the alleged scheme to curb competition among Blue Cross Blue Shield organizations deprived the vehicle manufacturer of "the opportunity to purchase health insurance products and services from a lower cost competitor and/or at a price set by the free market." Ford said it had spent more than $500 million on premiums since 2009 for "fully insured" products for employees in designated areas in the state, according to the complaint.