Blue Cross/Blue Shield of Michigan: Hidden Surcharges for Self-Funded Insurance Customers
Recent discoveries into the billing practices at Blue Cross/Blue Shield of Michigan (BCBSM) reveal that it fraudulently charged certain administrative charges to its employer-customers who maintained self-funded medical insurance plans for their employees.
Many employers maintain self-funded medical insurance plans for their employees and contract with BCBSM to administer or operate their plans (i.e. process employee claims, make payments to doctors and hospitals etc.). Prior to 1994, BCBSM charged these employers a basic annual administrative fee for its services and in addition, charged various additional fees (“surcharges”) to bolster its (BCBSM’s) revenues to cover losses in its other lines of business. BCBSM disclosed these surcharges on its invoices. When employers complained and objected to the surcharges, BCBSM changed its billing practice by deleting any reference to the surcharges and instead began secretly marking up hospital claims to include the surcharge.
These hidden surcharges constitute a violation of the federal Employee Retirement Income Security Act (ERISA), and the first case involving these claims, Hi-Lex Controls v. BCBSM, went to trial in Detroit in April 2013, resulting in an award for the plaintiff-employer for the full amount of the hidden surcharges– more than $5 million – along with interest and attorneys’ fees.
The attorneys at Sommers Schwartz are actively investigating claims by other employers who maintained self-funded medical insurance plans for their employees and retained BCBSM as their plan administrator, to determine whether they, too, were fraudulently charged these hidden surcharges in violation of the law. If you believe that your company has been the victim of BCBSM’s unlawful billing practices, you need to act quickly to preserve and pursue your rights. Please contact us today to learn how we can help.
We fight hard. And we win.
News & Case Alerts
Read related articles and learn about recently filed cases.
Our attorneys have been featured on local and national media outlets, including:
Praise for Al Asciutto
I had the pleasure of working with Al Asciutto, and I couldn’t be more impressed with his professionalism, knowledge, and dedication. From the very beginning, he took the time to thoroughly understand my case and provided clear, practical advice tailored to my needs. Throughout the process, Mr. Asciutto was incredibly…
About Medical Malpractice Lawyer Muskan Ali
Attorney Ali has truly been a godsend! She is patient, knowledgeable, and kind. She has been the biggest assistance as I navigated my medical malpractice case, and I truly appreciate her help so much. Highly recommended to everyone!
Muskan Ali Is an Incredible Resource
Muskan Ali has been an incredible resource for legal guidance, especially in the area of medical malpractice. She always takes the time to explain complex issues in a way that’s easy to understand, and she helped me feel confident about my next steps. Her professionalism and expertise truly stand out….
Recommending Muskan Ali
I highly recommend attorney Muskan Ali for your legal needs. She is knowledgeable, hardworking, and a strong lawyer.
Praise for Ramona Howard
Ramona Howard is an exceptional attorney whose intelligence, thoroughness, hard work, and dedication were apparent at every step of my case. From start to finish, I was impressed by her continuous support—listening to my concerns, explaining things I didn’t understand, and putting me at ease during an extremely stressful time….
Praise for Muskan Ali
I had the chance to work with Attorney Muskan Ali, who helped me with my legal issues and guided me through the whole process. She is amazing! I highly recommend her for all your legal needs!
Praise for Jay Yasso
I have watched Jay Yasso work incredibly hard for over 30 years at Sommers Schwartz. He has been awarded many multi-million dollar settlements and has received many referrals over the years from happy clients. He treats people with respect, which is why so many lawyers, even on the opposing side,…
A Successful Outcome for a Medical Malpractice Client
I dealt with Dina Zalewski, and Judy Susskind was my attorney. They worked so hard and were very compassionate and personable. Judy worked to get me the best possible outcome with my lawsuit, and I wouldn’t have chosen anyone else. I highly recommend them to anyone looking for an attorney,…
Our Clients Say It Best
