Mich. BCBS Stingy On Drug Treatment Payments, Suit Says

By Danielle Nichole Smith (July 31, 2019, 7:13 PM EDT) -- Blue Cross Blue Shield of Michigan was hit with a $40 million lawsuit Wednesday alleging the insurer improperly slashed its reimbursement rates for substance abuse treatment facilities, choosing to line its own pockets instead of covering the claims even as the state faced a "worsening opioid epidemic."

Serenity Point Recovery Inc. and several other substance abuse treatment facilities said in their complaint that BCBSM cut its reimbursement rates in 2016, causing private providers across Michigan to have to turn away patients and, in some cases, sticking patients with surprise medical bills for tens of thousands of dollars.

BCBSM's reimbursement rates for residential...

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