Two Arkansans have joined Blue Cross and Blue Shield policyholders around the country in litigation that seeks class status in a lawsuit that accuses the 39 insurers under that brand of practicing as monopolies and inflating premiums.
Robert Finne of Drasco and Linda Mills of Judsonia have filed complaints in U.S. District Court for the Eastern District of Arkansas. Their cases will probably be consolidated with a number of other cases under U.S. District Judge R. David Proctor for the Northern District of Alabama, said John Holton, a Memphis lawyer representing the two plaintiffs.
The complaints filed in Arkansas seek a class that would be made up of Blue Cross of Arkansas policyholders since 2009, whether through group or individual policies, according to the filings made on March 18 and 21.
The complaints, which seek a jury trial, ask for triple the amount of the purported overcharge of premiums, plus at least $76,000 per policyholder. The complaints say Blue Cross and Blue Shield premiums have been “ skyrocketing” for more than a decade, though the court filing does not quantify the amounts.
A spokesman for Blue Cross Blue Shield of Arkansas was unable to provide an answer Monday as to how much its premiums have increased.
Tilden Katz, a spokesman for the Blue Cross Blue Shield Association, said in a prepared statement sent by e-mail: “We believe this litigation is without merit and we will vigorously defend our system and the benefits it provides to customers. The Blue Cross Blue Shield system provides specific advantages: affordable access to a broad network of doctors and hospitals, serviced by a local company with a deep commitment to the community.”
The Arkansas complaints argue that there is a conspiracy among the 39 Blue Cross companies which affords them unlawful market dominance across the nation, violating the federal Sherman Act which, among other things, bars agreements among competitors to fix prices or allocate customers for a product or service. Because of this collusion, the complaints argue, the Blue Cross companies do not compete against one another.
In Arkansas, Blue Cross had 39.6 percent of the state’s market share in terms of total premiums for 2011, according to the National Association of Insurance Commissioners. It ranked 72nd among the top 125 insurers in the nation. The nearest competitor in Arkanasas was United Health at 11 percent.
Business, Pages 23 on 03/26/2013