Blue Cross Illinois To Pay $25M To End Medicaid Suit

Law360, New York (February 24, 2011, 10:36 PM EST) -- Blue Cross Blue Shield of Illinois will pay $25 million to settle claims that it wrongly took sick children off its insurance rolls and stuck Medicaid with the costs, the U.S. Department of Justice said Thursday.

BCBS, a subsidiary of Health Care Service Corp., allegedly stopped covering nursing expenses for medically fragile, technologically dependent children based on internal guidelines that were more restrictive than the actual language of its policies.

When some policyholders requested review of their denied claims, BCBS also wrongly told them that their...
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