Economy
Illinois Blue Cross to Pay $25 Million for Denying Sick Children Insurance
Blue Cross Blue Shield Illinois, the state’s largest health insurance company, must pay $25 million to settle allegations that the company denied insurance coverage to sick children who needed nursing care, the Chicago Tribune reports. The insurance giant fraudulently shifted claims to the state’s Medicaid program for its poor residents.
The settlement follows several years of complaints from patients and their family members whose claims were repeatedly denied by Blue Cross Blue Shield of Illinois. “Blue Cross Blue Shield’s inappropriate denial of legitimate claims placed an undue burden on the state’s finances,” Illinois Attorney General Lisa Madigan said in a statement. “My office is committed to holding health care insurers accountable on behalf of the people of Illinois for this type of deception and fraud.”
Nearly $12 million in medical costs that should have been covered by the company were instead shifted to Medicaid.
Blue Cross Blue Shield of Illinois denies any wrongdoing.
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