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Release Date: 03/02/1999 |
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For more information call: (202) 219-8921 |
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An Iowa based insurance company, formerly Blue Cross/Blue Shield
of Iowa and South Dakota, will pay $6.875 million to employers and their
workers who were denied discounts they should have received for health
services. |
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The U.S. Department of Labor reached a settlement with Wellmark,
Inc. of Des Moines, which also will pay $1.375 million in civil penalties. The
Labor Department alleges that Wellmark, when operating as Blue Cross/Blue
Shield, negotiated discounts with hospitals and other health care providers but
billed clients at full fees. |
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Blue Cross/Blue Shield of Iowa and South Dakota administered more
than 200 private employer self-insured health plans. The plans were governed by
the Employee Retirement Income Security Act, which is enforced by the Labor
Department's Pension and Welfare Benefits Administration. |
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Since 1993, the Pension and Welfare Benefits Administration has
conducted 118 investigations of self-insured health plan administrators and
recovered more than $31 million. |
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U.S. Department of
Labor news releases are accessible on the Internet. The information in this
news release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing your
request. Call 202.693.7773 or TTY 202.693.7775. |
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