DOL sues BCBS of Minnesota for wrongly collecting $66.8M from self-funded plans
The Department of Labor alleges Blue Cross Blue Shield of Minnesota wrongly passed along a “provider tax” – a state tax paid by hospitals and clinics – to 370 self-funded employer health plans it administers.
By Alan Goforth | January 19, 2024 at 11:23 AM
The U.S. Department of Labor late last week filed a lawsuit alleging that Blue Cross Blue Shield of Minnesota wrongly passed along a particular state tax to employer health plans. The outcome of the case could have ramifications for plan sponsors, experts said.
According to the complaint, Blue Cross required self-funded employer health plans to cover the cost of the state’s “provider tax” as an undisclosed piece of the negotiated service rates they pay to health-care providers. Hospitals and clinics in the state pay the tax to fund the MinnesotaCare health insurance program for lower-income residents.
Between 2016 and 2020, Blue Cross collected at least $66.8 million from 370 self-funded plans to pay the tax obligations for health-care providers in the health insurer’s network, the lawsuit said. It did this “without authority to do so under the plans’ governing documents.”
DOL sues BCBS of Minnesota for wrongly collecting $66.8M from self-funded plans
