Ford Motor has filed a lawsuit against Blue Cross Blue Shield Association in a US court, alleging a price-fixing conspiracy that resulted in the automaker paying inflated costs for health insurance products for its employees.
According to Reuters, Ford filed a lawsuit in Detroit federal court, accusing the insurer and its regional Michigan branch of unlawfully dividing up parts of the country in an alleged scheme to reduce competition.
Ford is facing allegations related to a $2.7 billion settlement reached by Blue Cross Blue Shield Association and its member companies with policy holders in Alabama federal court. Ford has a global workforce of over 170,000 employees.
Ford decided not to participate in the settlement and is now pursuing its own claims. The settlement is currently being appealed at the 11th U.S. Circuit Court of Appeals, which has agreed to expedite its review.
Related: Ford Canada Agrees To $82 Million Antitrust Settlement
Both a spokesperson for defendant Blue Cross Blue Shield Association and a representative from Blue Cross Blue Shield of Michigan declined to comment on the pending litigation.
The lawsuit aims to prevent Blue Cross Blue Shield’s alleged anticompetitive behavior and requests triple damages and other forms of relief.
According to the complaint, Ford reported spending over $500 million on fully insured products for their designated employees in certain areas of the state since 2009.
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.”
