U.S. Supreme Court will not review fraud judgment against Blue Cross Blue Shield
The U.S. Supreme Court announced Oct. 20 that it will not review a $6 million judgment against Michigan's largest health insurer, Blue Cross Blue Shield of Michigan, in the case of Hi-Lex Controls, Inc. v. Blue Cross Blue Shield of Michigan. The decision concludes three years of litigation over the legality of Blue Cross’s hidden fees, as reported in the Mary 23, 2014 issue of the Grand Rapids Legal News. The Hi-Lex matter is the first of nearly fifty cases filed by Varnum over the fees. With the nation’s highest court refusing to review, all appeals are exhausted and the way is now clear for the remaining cases to go forward.
“On behalf of our client, we are very pleased that the Supreme Court denied review and essentially agreed with the four other federal judges who reviewed this case,” said Varnum attorney Perrin Rynders. “Now that all appeals have been exhausted, other clients who have been awaiting the outcome can move forward with confidence. We are thankful the matter is concluded, but not surprised that BCBSM pursued it to this degree. The initial award was steep and awards from the pending cases are likely to be significant.”
Rynders noted that the ultimate result is a win for more than just those clients who have filed suit. BCBSM apparently discontinued its practice of rolling fees and surcharges into "hospital claims" for its self-insured clients in 2012, shortly after Varnum filed its first group of lawsuits.
The Varnum litigation team consisted of Rynders, Aaron Phelps, and Stephen MacGuidwin. The original judgment was issued by U.S. District Court Judge Victoria A. Roberts, who entered judgment in favor of Hi-Lex for a return of all hidden fees taken from Hi-Lex since 1994 plus interest.
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