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As set forth in the Department of Justice’s (“DOJ”) Stipulated Motion and Brief To Dismiss Without Prejudice (see attached), the DOJ has dropped its antitrust action against Blue Cross Blue Shield (“BCBS”) pending in Detroit in the United States District Court for the Eastern District of Michigan.   The basis for the dismissal is the March 18, 2013 enactment of Michigan laws (2013 P.A. 5 and 2013 P.A. 6) banning most favored nation clauses (“MFN”) by insurers, health maintenance organizations, and nonprofit health care corporations in contracts with providers.  Specifically, beginning on January 1, 2014, those laws will prevent BCBS of Michigan and its subsidiary Blue Care Network from using the MFN clauses challenged in the action, or other MFN clauses with hospitals in Michigan.  In the interim, the Commissioner of the Michigan Office of Financial and Insurance Regulation has ordered that no insurer may use MFNs unless the MFN is submitted to and approved by the Commissioner.

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