A federal judge dismissed an antitrust lawsuit from Rocky Point, N.Y.-based Long Island Anesthesiologists who alleged that UnitedHealthcare and MultiPlan conspired to slash reimbursement rates by more than 80% following the implementation of the No Surprises Act in January 2022, according to court documents accessed by Becker’s.
Here are five more notes to know:
1. The plaintiffs claimed that MultiPlan, acting on behalf of UnitedHealthcare, used repricing technology and aggressive negotiating tactics to coerce providers into accepting reduced payments.
2. The original complaint was filed in 2022 but was previously dismissed by U.S. District Judge Hector Gonzalez, who allowed the anesthesiology group to submit an amended version.
3. In a ruling issued April 7, Mr. Gonzalez found that the revised complaint failed to present a plausible claim. “The amended complaint spans 331 paragraphs but fails to include a single factual allegation that plausibly suggests United and MultiPlan conspired to restrain trade,” he wrote. The judge also denied the plaintiffs another opportunity to amend the complaint.
4. The ruling marks another legal victory for MultiPlan, which rebranded as Claritev in February. The company is currently facing a series of lawsuits accusing it of collaborating with commercial payers in a large-scale price-fixing scheme, allegedly resulting in tens of billions of dollars in underpayments to providers annually. MultiPlan has repeatedly denied the accusations, arguing that the lawsuits lack merit and would lead to higher healthcare costs for patients and employers.
5. This is not the first time courts have sided with MultiPlan. In August, a California Superior Court judge dismissed a similar lawsuit brought by a bankrupt health system. The complaint alleged MultiPlan formed an agreement with major payers to suppress out-of-network reimbursement rates. The judge ruled in favor of MultiPlan, agreeing with its argument that reimbursement levels do not qualify as prices subject to fixing under the Cartwright Act.
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