Arizona AG sues MultiPlan, major health insurers over alleged algorithm price-fixing

Arizona Attorney General Kris Mayes filed a lawsuit on June 1 against MultiPlan and eight major health insurers—including Aetna, Cigna, and UnitedHealthcare—accusing them of colluding to fix prices through a shared algorithm. The state alleges the companies reduced payments to doctors and hospitals for out-of-network care while increasing out-of-pocket costs for patients, violating antitrust laws. The lawsuit claims the alleged scheme has cost Arizona patients and providers billions, with Mayes calling it 'old-fashioned price-fixing using new technology.' She stated the practice boosts corporate profits at the expense of patients, who face unexpected bills and limited access to care. Dr. Andrew Carroll, a Chandler physician, testified that the scheme harms patients and forces doctors to limit services due to underpayment. Dr. Jason Jameson of the Arizona Medical Association added that the practice exacerbates the state’s healthcare workforce shortage, driving physicians from practice. The lawsuit seeks to stop the pricing scheme, impose civil penalties, and compel reimbursement to affected patients and providers. MultiPlan denied the allegations, stating it complies with antitrust laws and will defend itself legally. Aetna and HCSC also denied wrongdoing, with the latter refusing to comment on pending litigation. Mayes emphasized that the lawsuit aims to restore fairness in Arizona’s healthcare system, arguing that insurance companies should not prioritize profits over patient access. The case follows a broader pattern of legal challenges against MultiPlan, with similar claims previously dismissed in California courts.