Blue Shield Can't Revive $12M Patient Shifting Payment Suit

By Kevin Stawicki (October 22, 2020, 9:42 PM EDT) -- A California appeals court has upheld Blue Shield of California's loss in its suit accusing a managed care organization of avoiding to pay for its most expensive patients by shifting them over to Blue Shield's private coverage, costing the private insurer nearly $12 million.

The unanimous panel of the state Court of Appeal's First Appellate District on Wednesday upheld a trial court's decision to grant summary judgment to Santa Barbara San Luis Obispo Regional Health Authority, known as CenCal Health. California Physicians' Service, which does business as Blue Shield of California, failed to meet an exception to the government tort immunity...

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