Blue Cross Michigan Sued Over Health Plan Cost-Savings Program

Blue Cross Blue Shield of Michigan was hit with a proposed class action claiming it funnels its self-funded health plan clients through a convoluted cost-savings program that’s actually an engine for extracting high fees.

The lawsuit, filed by Michigan convenience store chain Wesco Inc., centers on Blue Cross’ “shared savings program,” which is aimed at recovering overpayments and preventing improper adjudication of medical claims. This “complex and convoluted” program allows Blue Cross to “surreptitiously and unlawfully” extract excess compensation for itself at the direct expense of its customers and in violation of the Employee Retirement Income Security Act, Wesco ...