BCBS and the hospitals were under investigation after the insurer allegedly paid $26 million to six hospitals in return for their purchasing BCBS coverage for their employees, instead of coverage offered by New West, a health insurer owned by the six hospitals. The hospitals include: Billings Clinic, Bozeman Deaconess Hospital, Community Medical Center, St. Peter’s Hospital, Northern Montana Hospital and Benefis Healthcare. Benefis Healthcare was not included in the settlement because it had already purchased BCBS coverage for its employees.
As part of the settlement, the hospitals may purchase insurance through BCBS, but New West must sell its remaining 14,600 policies to an insurer other than BCBS. Currently, PacificSource of Oregon is in negotiation to purchase the policies, according to the report. New West will keep its Medicare Advantage business, however.
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