AMA seeks antitrust probe of Pa. Blues
Chicago -- The AMA and Pennsylvania Medical Society last month asked the Justice Dept. to investigate the two Pennsylvania-based Blue Cross and Blue Shield Assn. insurers for alleged anti-competitive conduct.
Specifically, the medical societies asked the Justice Dept. to examine whether Independence Blue Cross, the dominant health plan in eastern Pennsylvania, and Highmark Inc., the dominant health plan in the western part of the state, have maintained their market dominance by agreeing not to compete with each other.
The medical societies contend the companies' conduct has restricted patient choice and allowed them to raise premiums while cutting payments to providers. According to the AMA, Highmark controls more than 60% of the Pittsburgh market, while Independence controls more than 50% of the Philadelphia-area market.
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