3 million plaintiffs seek $1.2B from California health firm

SACRAMENTO, Calif. (AP) — A lawsuit over high health care bills filed on behalf of more than 3 million employers and people seeks as much as $1.2 billion from a large Northern California health systems in an antitrust class-action trial getting underway Thursday.

Plaintiffs in the lawsuit allege in court documents that Sutter Health abused its market power and “caused enormous adverse economic impacts” by discouraging patients from using lower-cost insurance and lower-cost hospitals.

Sutter Health said in a statement Wednesday that it looks forward to “demonstrating that in Northern California’s highly competitive market, Sutter’s integrated healthcare network provides high-quality care that creates efficiencies, drives down total cost of care and benefits the diverse communities we serve.”

The lawsuit claims Sutter used its market power for inpatient services in seven mostly rural Northern California areas where it is the only or dominant hospital to bind insurers in four other communities where it has competition.

That allowed Sutter to overcharge for its own services, the lawsuit alleged, and caused nearly $400 million in insurance premium overcharges to the plaintiffs between 2011-2017. Five companies provided the health insurance: Anthem Blue Cross, Blue Shield of California, Aetna, United Healthcare, and Health Net.

The law allows triple damages if the plaintiffs win against Sutter Health, meaning a potential award of $1.2 billion.

The named plaintiffs are four people who paid health insurance premiums and two companies that paid premiums for their employees since 2011, but the class includes any individuals or companies in the same position across much of Northern California.

The plaintiffs’ attorneys estimate that includes 3 million patients and employers....