Arizona Sues Major Insurers for Price-Fixing Scheme Hurting Providers

Arizona AG sues MultiPlan and insurers over alleged healthcare price-fixing.

On June 1, 2026, Arizona Attorney General Kris Mayes filed a lawsuit accusing MultiPlan and major health insurers of a coordinated price-fixing conspiracy that systematically underpays physicians and hospitals. The insurers named include Aetna, Cigna, UnitedHealthcare, Humana, Elevance, Molina, Centene, and Health Care Service Corporation. The suit claims these insurers jointly used MultiPlan's shared algorithm to set out-of-network payment rates.

The algorithm allegedly results in consistently low reimbursement rates across providers and regions, regardless of actual costs or market competition. According to Attorney General Mayes, insurers shared confidential claims and payment data with MultiPlan, which pooled this data to fuel the algorithm's price suppression. MultiPlan then charged insurers a cut of the savings earned by paying providers less, who in turn billed employers fees labeled as 'shared savings.'

"MultiPlan and major insurance companies across Arizona allegedly conspired to keep payments to providers low in a scheme to pad their profit margins," Mayes said. The suit argues that this scheme forces physicians to accept payments below operational costs, raising patients' out-of-pocket expenses and limiting access to care.

This lawsuit follows similar claims from the American Medical Association and the Illinois State Medical Society, who in October 2024 filed a federal antitrust suit against MultiPlan for price fixing that harms out-of-network providers. Additionally, Community Health Systems sued MultiPlan in May 2024 alleging collusion resulting in hundreds of millions in provider losses.

The Arizona suit seeks a permanent injunction to end the conduct, restitution for harmed parties, surrender of illicit profits, and civil penalties, citing violations of the Arizona Uniform State Antitrust Act and Consumer Fraud Act.

MultiPlan's revenue surged from $23 million in 2012 to $709 million in 2021, and about 700 insurers nationally — including the 15 largest plans — use its services. A 2020 study found MultiPlan’s out-of-network payments were 1.5 to 49 times lower than traditional methods, underscoring systemic underpayment complaints.

Physicians supporting the lawsuit emphasize the impact on care delivery. Dr. Andrew Carroll shared, "As a doctor, there is nothing more frustrating or heartbreaking than watching an insurance plan get in the way of a patient’s needs." Dr. Piyush I. Vyas, President of the Illinois State Medical Society, highlighted the urgent need for transparency and fair compensation.

Yes, but: No statements or responses from MultiPlan or the named insurers have been provided regarding the allegations as of now.

What's next: The case will proceed in Arizona state court, with potential implications for ongoing federal lawsuits by AMA and others targeting MultiPlan and insurer practices.