Burns Charest Representing Healthcare Provider in Price-Fixing Claims Against Insurers
The firm’s Warren Burns is leading an attorney team in litigation against data analytics firm MultiPlan, alleging that the company conspired with UnitedHealth, Aetna, Cigna and other major insurers to systematically underpay out-of-network healthcare providers by tens of billions annually.
Burns Charest is representing Shreveport, La.-based Allegiance Health Management, which operates 15 hospitals located in Louisiana, Texas, and Mississippi. The lawsuit alleges that by 2022, MultiPlan’s algorithms allowed insurers to unlawfully fix prices on more than 370,000 out-of-network claims daily, which has resulted in $22.9 billion in underpayments in 2023 alone.
The for-profit system's lawsuit alleges the "widespread use of MultiPlan's repricing tools, particularly among the biggest health insurers, gives plaintiffs no realistic option other than accepting these artificially suppressed reimbursement rates."
In late July the Judicial Panel on Multidistrict Litigation centralized the Allegiance lawsuit and five other class actions in federal court for the Northern District of Illinois.