Blue Health Insurers Drop Revenue Rule That Limited Competition

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In the Press

Thomas Greaney
Thomas GreaneyDistinguished Fellow and Advisory Board Member

The Wall Street Journal

Anna Wilde Mathews
May 3, 2021


Distinguished Fellow and Advisory Board Member Tim Greaney was quoted in the 5/3/2021 Wall Street Journal article “Blue Health Insurers Drop Revenue Rule That Limited Competition“:

The Blue Cross Blue Shield Association includes 35 insurers, each of which typically hold exclusive rights to the Blue Cross and Blue Shield brands within a certain territory, a setup that would remain intact under the antitrust settlement.

However, lifting the revenue cap could allow the Blue insurers to compete more against one another by expanding their non-Blue businesses, experts said. Dropping the limit “certainly should increase competition,” said Tim Greaney, a professor at the University of California Hastings College of the Law, though he said it isn’t clear how quickly it would have an effect.

One reason for the insurers to take action on the revenue rule might be to improve their position in the healthcare providers’ ongoing suit, by removing one practice that could be viewed as anticompetitive, Mr. Greaney said.

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