comprehensive

MultiPlan is facing a new class action lawsuit that alleges the company and large health insurers “conspired to fix, suppress, and stabilize” payments made for out-of-network medical claims.

The lawsuit, filed by for-profit hospital company Allegiance Health Management, builds on the contentious relationship between hospitals and MultiPlan, a data technology vendor that works with the biggest insurers to determine how much should be paid for care that is delivered outside of an insurance network. It comes just weeks after the New York Times published an investigation detailing how MultiPlan and its insurance company clients make more money by low-balling payments to hospitals.

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The lawsuit further lays bare some of the warped incentives that exist within the health care system: out-of-network providers billing inflated amounts, insurers profiting by making sure those payments are as low as possible, and patients stuck in the middle with bills they often cannot afford.

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