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Archived News Release--Caution:
information may be out of date.
For more information call: (202) 219-8921
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.
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.
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.
Since 1993, the Pension and Welfare Benefits Administration has
conducted 118 investigations of self-insured health plan administrators and
recovered more than $31 million.
Archived News Release--Caution:
information may be out of date.
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