BCBS of Michigan faces more than 30 lawsuits alleging hidden health plan fees


http://www.beckershospitalreview.com/legal-regulatory-issues/bcbs-of-michigan-faces-more-than-30-lawsuits-alleging-hidden-health-plan-fees.html

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More than 30 lawsuits filed against Detroit-based Blue Cross Blue Shield of Michigan in the past week claim the insurer charged employers unauthorized and hidden fees for their health plans, Bloomberg BNA reports.

Filed between Aug. 9 and Aug. 11 in Michigan’s federal court, the lawsuits allege BCBSM issued hidden markups to employers’ health plan assets to shore up its finances, the report states. The allegations stem from a 2014 appeals court decision finding the payer responsible for the unauthorized fees under the Employee Retirement Income Security Act. The decision also upheld a $6 million judgment against BCBSM.

More than 200 ERISA lawsuits alleging hidden health plan fees were filed against the payer since the 2014 decision, the report states. A college, an auto parts maker, a plastics manufacturer and a car dealer are among the employers suing BCBSM.

BCBSM did not respond to Bloomberg BNA‘s request for comment.

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