The Department of Justice (DOJ) recently announced that it, the State of Michigan and Blue Cross Blue Shield of Michigan (BCBSM) (the Parties) filed a joint motion to dismiss their antitrust suit without prejudice regarding most-favored-nation (MFN) clauses in the Eastern District of Michigan. MFN clauses are often used in contracts between health insurance plans and health care providers to ensure no other plan obtains better rates than those obtained by that insurance plan. The Parties filed the motion after the State of Michigan passed a law banning the use of MFN clauses in contracts with, among others:

The ban will go into effect on January 1, 2014. In the interim, the Commissioner of the Michigan Office of Financial and Insurance Regulation has required that all current MFN clauses be declared void and unenforceable, including the BCBSM clauses alleged to violate the antitrust laws. The Commissioner must also approve any MFN clause used until the ban goes into effect. In light of these developments, the Parties have agreed that the injunctive relief sought by the DOJ and State of Michigan against BCBSM's use of MFN clauses is unnecessary. For more information on MFN clauses, see Practice Note, Most Favored Nation Clauses.