Hinshaw v. Blue Cross & Blue Shield

In 1969, plaintiff, a pharmacist, entered into a participation agreement with the defendant, Blue Cross and Blue Shield. Pursuant to this participation agreement, plaintiff received a standard dispensing fee for each prescription. The participation agreement states that "reimbursement, except for insulin, will be the total of net acquisition costs as defined by Michigan Blue Shield plus the current dispensing fee payable by the Michigan Blue Shield for pharmaceutical services as stated in the Blue Shield pharmacy manual at the time services are performed”. The pharmacy manual, in addition to…