{"id":15132028,"date":"2026-06-01T22:15:41","date_gmt":"2026-06-02T02:15:41","guid":{"rendered":"https:\/\/www.inthacity.com\/news\/arizona-sues-multiplan-major-insurers-alleging-a-cartel-that-underpaid-doctors-and-hospitals\/"},"modified":"2026-06-01T23:00:48","modified_gmt":"2026-06-02T03:00:48","slug":"arizona-sues-multiplan-major-insurers-alleging-a-cartel-that-underpaid-doctors-and-hospitals","status":"publish","type":"post","link":"https:\/\/www.inthacity.com\/news\/arizona-sues-multiplan-major-insurers-alleging-a-cartel-that-underpaid-doctors-and-hospitals\/","title":{"rendered":"Arizona sues MultiPlan, major insurers, alleging a \u2018cartel\u2019 that underpaid doctors and hospitals"},"content":{"rendered":"<figure><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/azmirror.com\/wp-content\/uploads\/2026\/06\/mayes-multiplan-suit-1024x683.jpg\" class=\"attachment-large size-large wp-post-image\" alt=\"\" style=\"margin-bottom: 10px\" \/><figcaption>\n<p style=\"font-size:12px\">Attorney General Kris Mayes speaks to reporters on June 1, 2026, announcing a lawsuit accusing MultiPlan and health insurers of colluding on prices in violation of Arizona law. (Photo by Jerod MacDonald-Evoy\/Arizona Mirror)<\/p>\n<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400\">Arizona Attorney General Kris Mayes announced a lawsuit Monday against MultiPlan, <\/span><a href=\"https:\/\/www.healthcaredive.com\/news\/multiplan-rebrands-claritev\/740242\/\" target=\"_blank\"><span style=\"font-weight: 400\">which last year renamed itself Claritev<\/span><\/a><span style=\"font-weight: 400\">, alleging the company conspired with insurers for years to under pay doctors and hospitals, oftentimes leaving patients footing the bill for out-of-network care.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201cThis wasn\u2019t an accident,\u201d Mayes told reporters Monday. \u201cIt was a coordinated deliberate scheme.\u201d\u00a0<\/span><\/p>\n<p>        <a href=\"https:\/\/azmirror.com\/subscribe\" style=\"text-decoration:none\" aria-label=\"Get the morning headlines delivered to your inbox.\"><\/p>\n<div class=\"subscribeShortcodeContainer\">\n<div class=\"subscribeTextContainer\">\n                <i class=\"fas fa-envelope\"><\/i><\/p>\n<p>GET THE MORNING HEADLINES.<\/p>\n<\/p><\/div>\n<div class=\"subscribeButtonContainer\">\n                <button>SUBSCRIBE<\/button>\n            <\/div>\n<\/p><\/div>\n<p>        <\/a><\/p>\n<p><span style=\"font-weight: 400\">Mayes\u2019 office is accusing Multiplan, along with insurers Aetna, Cigna, UnitedHealthcare, Humana, Elevance, Molina, Centene and Health Care Service Corporation, of working together to determine lower rates for out-of-network care.\u00a0<\/span><\/p>\n<div class=\"fullwidth\"><\/div>\n<p><span style=\"font-weight: 400\">The sprawling complaint alleges that MultiPlan helped these companies set the prices for out-of-network services by using a proprietary algorithm that fixed prices for each service regardless of the geographic area or other factors.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">The company has already been under the microscope after a 2024 <\/span><a href=\"https:\/\/www.nytimes.com\/2024\/04\/07\/us\/health-insurance-medical-bills-takeaways.html\" target=\"_blank\"><span style=\"font-weight: 400\">investigation by the New York Times<\/span><\/a><span style=\"font-weight: 400\"> brought many of the same allegations to light. The company is also facing a federal lawsuit making similar allegations in which the <\/span><a href=\"https:\/\/www.reuters.com\/legal\/government\/us-justice-dept-backs-medical-providers-lawsuit-over-data-analytics-software-2025-03-27\/\" target=\"_blank\"><span style=\"font-weight: 400\">U.S. Department of Justice has sided with<\/span><\/a><span style=\"font-weight: 400\"> those seeking relief from MultiPlan.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201cThis case, like the RealPage case, is an example of old fashioned price fixing using new technology which is against the law all the same,\u201d Mayes said, referring to <\/span><a href=\"https:\/\/www.azag.gov\/press-release\/attorney-general-mayes-sues-realpage-and-residential-landlords-illegal-price-fixing\" target=\"_blank\"><span style=\"font-weight: 400\">a lawsuit she filed in 2024<\/span><\/a><span style=\"font-weight: 400\"> involving collusion among apartment complex owners.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">The MultiPlan lawsuit alleges that insurers contributed to the \u201cillegal repricing scheme by supplying the claims, and billing data that informs MultiPlan\u2019s algorithms, which would be against each client-payor\u2019s competitive economic interests but for the market control on out-of-network services compensation rates affected by the conspiracy.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Mayes\u2019 office is seeking a permanent injunction from MultiPlan being allowed to operate in this way; restitution for those harmed; civil penalties; and for those named in the suit to surrender any profits made under the alleged \u201cillegal scheme.\u201d State prosecutors claim that MultiPlan and its co-conspirators violated Arizona\u2019s anti-trust act consumer fraud act.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201cThe more they squeezed our doctors and hospitals, the more profits they made,\u201d Mayes said.\u00a0<\/span><\/p>\n<p>Claritev, which used to operate under the name MultiPlan, said the lawsuit is &#8220;without merit&#8221; and countered that it follows state and federal laws.<\/p>\n<p>&#8220;Because this is active litigation, we will defend ourselves through the legal process and will not comment further on the specifics of the complaint at this time,&#8221; the company said in a statement. &#8220;We remain focused on working with clients and partners across the healthcare ecosystem to make healthcare more transparent, accessible, and affordable for consumers.&#8221;<\/p>\n<p><span style=\"font-weight: 400\">The lawsuit alleges that MultiPlan and the health insurers wielded an outsized influence, effectively eliminating any competition and consolidating market power \u2014 allowing them to set prices and \u201ceffectively forming a buyer\u2019s \u2018cartel.\u2019\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">This \u201ccartel\u201d primarily impacted PPO plans, specifically those through employers which are offered as having increased flexibility.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">The availability of a large network of insurers and their data was something that MultiPlan used to \u201cfurther lower out-of-network prices and to enlist new clients into the cartel,\u201d the lawsuit alleges.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201cMultiPlan retains all competitor data in a massive database\u2014by February 2026, MultiPlan touted that it had \u2018approximately 15 petabytes of data\u2019\u2014to which all clients have access,\u201d prosecutors wrote in the lawsuit.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">And that data allowed MultiPlan to create tools like PlanOptix, which allowed any member of that \u201ccartel\u201d to determine in real time if a competitor was reimbursing at a higher or lower rate than them.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201cAs a doctor, there is nothing more frustrating or heartbreaking than watching an insurance plan get in the way of a patient&#8217;s needs,\u201d Dr. Andrew Carroll told reporters Monday. Carroll supported the lawsuit and said that MultiPlan\u2019s alleged price fixing hurts smaller independent doctors like him, as they are unable to appeal decisions made by the company.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Doctor and Arizona Medical Association President Jason Jameson said that the \u201ccollusion\u201d among insurers created a dangerous environment for patients in the state, in addition to harming physicians and hospitals.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201cIt is more than insulting, it is actually dangerous to the healthcare in our state,\u201d Jameson said.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">With hospitals set to see major impacts to their budgets from Medicaid and Medicare cuts, MultiPlan and the insurer\u2019s \u201ccollusion\u201d creates further problems for hospitals that oftentimes rely on insurance payouts, Mayes said.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201cThe MultiPlan cartel takes particular advantage of hospital emergency departments,\u201d the lawsuit alleges. \u201cEmergency rooms cannot decline to treat patients with insurance plans connected to MultiPlan. As such, hospital emergency rooms rely on the commercial insurance networks that contract with MultiPlan for reasonable compensation for emergency services. At the same time, demand for emergency department medical services is highly inelastic. Patients often have little choice regarding which hospital they are taken to and are rarely able to avoid or defer emergency medical treatment. By colluding to underpay emergency services providers, MultiPlan and its clients have been bleeding emergency rooms dry.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">The lawsuit also alleges that private medical groups with tight profit margins are being hit hard by these underpayments.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201cWhile revenue per physician has increased by 9.1% since 2020, the median expense per physician has increased by 26.5%,\u201d the lawsuit says. \u201cJust like other providers, these medical groups cannot afford to be underpaid. When they are, access to and the quality of care could decline, which, in turn, harms patients.\u201d\u00a0<\/span><\/p>\n<p><em>***UPDATED: This story has been updated to include additional comments.<\/em><\/p>\n<p>        <a href=\"https:\/\/azmirror.com\/donate\/?oa_referrer=midstorybox\" style=\"text-decoration:none\"><\/p>\n<div class=\"donateContainer\">\n<div class=\"donateTextContainer\">\n<p>YOU MAKE OUR WORK POSSIBLE.<\/p>\n<\/p><\/div>\n<div class=\"donateButtonContainer\">\n                <button>SUPPORT<\/button>\n            <\/div>\n<\/p><\/div>\n<p>        <\/a><\/p>\n<p class=\"inmi-source\">Source: <a href=\"https:\/\/azmirror.com\/briefs\/arizona-sues-multiplan-major-insurers-alleging-a-cartel-that-underpaid-doctors-and-hospitals\/\" target=\"_blank\" rel=\"noopener nofollow\">News \u2013 World \u2013 Phoenix \u2013 rss.app2 \u2192 manual entry<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Arizona Attorney General Kris Mayes announced a lawsuit Monday against MultiPlan, which last year renamed itself Claritev, alleging the company conspired with insurers for years to under pay doctors and hospitals, oftentimes leaving patients footing the bill for out-of-network care.\u00a0\u2026<\/p>\n","protected":false},"author":1,"featured_media":15132030,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[136],"tags":[],"class_list":["post-15132028","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-phoenix"],"featured_image_urls":{"full":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/06\/15132028-mayes-multiplan-suit-1024x683-1.jpg",1024,683,false],"thumbnail":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/06\/15132028-mayes-multiplan-suit-1024x683-1-300x200.jpg",300,200,true],"medium":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/06\/15132028-mayes-multiplan-suit-1024x683-1-620x414.jpg",620,414,true],"medium_large":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/06\/15132028-mayes-multiplan-suit-1024x683-1-768x512.jpg",768,512,true],"large":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/06\/15132028-mayes-multiplan-suit-1024x683-1-940x627.jpg",940,627,true],"1536x1536":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/06\/15132028-mayes-multiplan-suit-1024x683-1.jpg",1024,683,false],"2048x2048":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/06\/15132028-mayes-multiplan-suit-1024x683-1.jpg",1024,683,false],"post-thumbnail":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/06\/15132028-mayes-multiplan-suit-1024x683-1-998x665.jpg",998,665,true],"ignition_item":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/06\/15132028-mayes-multiplan-suit-1024x683-1-670x446.jpg",670,446,true],"ignition_item_lg":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/06\/15132028-mayes-multiplan-suit-1024x683-1.jpg",1024,683,false],"ignition_article_media":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/06\/15132028-mayes-multiplan-suit-1024x683-1-510x510.jpg",510,510,true],"ignition_minicart_item":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/06\/15132028-mayes-multiplan-suit-1024x683-1-160x160.jpg",160,160,true],"profile_24":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/06\/15132028-mayes-multiplan-suit-1024x683-1-24x24.jpg",24,24,true],"profile_48":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/06\/15132028-mayes-multiplan-suit-1024x683-1-48x48.jpg",48,48,true],"profile_96":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/06\/15132028-mayes-multiplan-suit-1024x683-1-96x96.jpg",96,96,true],"profile_150":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/06\/15132028-mayes-multiplan-suit-1024x683-1-150x150.jpg",150,150,true],"profile_300":["https:\/\/www.inthacity.com\/news\/wp-content\/uploads\/2026\/06\/15132028-mayes-multiplan-suit-1024x683-1-300x300.jpg",300,300,true]},"author_info":{"display_name":"news.iNthacity","author_link":"https:\/\/www.inthacity.com\/news\/author\/atombo\/"},"category_info":"<a 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