$1.13M Judgment Against Blues of Michigan Overturned

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An appeals court overturned a $1.13 million decision against Blue Cross Blue Shield of Michigan yesterday, finding that the payor validly contracted with Calhoun County and did not hide fees in its contracts, according to a Crain's Detroit Business report.

The decision stems from a 2008 suit that challenged fees Calhoun County paid to Detroit-based BCBS Michigan in exchange for access to the payor's best-in-state hospital network, dating back to 1990. The county claimed the contract involved hidden administrative costs and fees.

A three-judge panel unanimously overturned the judgment against the payor, ordering all claims against BCBS Michigan be dismissed and finding that Calhoun County agreed to pay the disclosed fees when it struck the agreement with payor.

This suit is the first of more than 30 involving self-insured public and private employers that have sued BCBS Michigan to go to oral arguments in the appeals court.

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