US seeks to close Blue Cross anti-trust case

HELENA — Federal prosecutors are asking a judge to approve an antitrust settlement involving two Montana health insurers now that one of the companies has been broken up.

U.S. Justice Department attorneys filed their request Monday asking U.S. District Judge Richard Cebull to sign the final judgment in the case against Blue Cross and Blue Shield of Montana.

The order would end the lawsuit that charged Blue Cross with being anticompetitive in its $26.3 million buyout of New West Health Service's approximately 11,000 hospital employee policyholders.

Prosecutors say the deal would have driven New West out of the commercial insurance business and allow Blue Cross to gain greater market dominance.

The settlement called for an outside company to buy New West's commercial business. That deal with PacificSource Health Plans was finalized Feb. 29.