US Justice Dept backs medical providers' lawsuit over data analytics software
March 27 (Reuters) - The U.S. Justice Department has lined up to support medical providers in lawsuits against health insurers and a data analytics company, telling a U.S. judge that the use of a common pricing algorithm can violate federal antitrust law.
In a court filing, opens new tab on Thursday, the Justice Department's antitrust division, under the leadership of newly confirmed Assistant Attorney General Gail Slater, challenged legal arguments made by analytics company MultiPlan and other defendants in their bid to dismiss a series of class action lawsuits.
Healthcare providers last year alleged major health insurers commonly were using a MultiPlan software tool as part of a price-fixing conspiracy that underpaid the providers billions of dollars in reimbursement rates for out-of-network services.
The lawsuits were consolidated before U.S. District Judge Matthew Kennelly.
MultiPlan, which rebranded in February as Claritev, on Thursday declined to comment on the Justice Department's filing but said the lawsuits 'are without merit and would ultimately increase prices for patients and employers.' Other defendants also have denied any wrongdoing.
Christopher Seeger of Seeger Weiss, a lead attorney for the plaintiffs, in a statement said the Justice Department's filing validates claims against MultiPlan and health insurer defendants.
'We look forward to holding the defendants accountable, ensuring that medical providers receive fair compensation and every American has access to the quality healthcare they deserve,' Seeger said.
The Justice Department did not immediately respond to a request for comment.
The medical providers' lawsuits came amid a growing number of cases claiming hotels and other industries unlawfully use revenue maximization platforms to fix prices.
The insurer defendants have argued that there was no conspiracy because they did not use MultiPlan in the same way to determine individual reimbursements.
The Justice Department was not a party in the medical providers' lawsuit, but asked to express the views of the United States.
'Competitors' use of algorithmic technologies to coordinate their decision-making poses a growing threat to the free market competition on which our economic system is premised,' Justice Department lawyers said in their filing.
The case is In re MultiPlan Health Insurance Provider Litigation, U.S. District Court for the Northern District of Illinois, No. 1:24-cv-06795.
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