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business1d ago
Arizona sues major health insurance companies for 'price fixing'
- Arizona files a lawsuit accusing major health insurers of illegal price fixing tied to MultiPlan data and an algorithm that set reimbursements.
- Mayes described the scheme as a cartel using MultiPlan's data and algorithm to set payments below customary levels.
- The lawsuit estimates billions in losses for Arizonans with providers absorbing the shortfall or passing costs to patients.
- Defendants include CVS (Aetna), Humana, Cigna, UnitedHealth, Centene, Molina Healthcare, and two Blue Cross subsidiaries.
- Mayes said the system relied on MultiPlan to set reimbursements rather than independent insurer decisions.
- The attorney general said the arrangement leaves providers and patients to absorb the difference in payments.
- A CVS spokesperson said they deny the allegations and will defend themselves vigorously.
- The suit focuses on data sharing and the use of an algorithm rather than independent rate setting by insurers.
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