Insurance Underwriter - Regulatory and Legal Developments
Report: Several Michigan communities sue insurer over hidden fees
November 03, 2009 12:39 PM ET
By Simran Sanyal
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Several Michigan communities have filed lawsuits accusing Blue Cross Blue Shield of Michigan of overcharging $40 million in hidden fees, The Detroit News reported Nov. 1. Some local governments may join a lawsuit seeking class-action status against the state's insurer, which has already settled two cases related to the fees, according to the report. Attorney William Horton anticipates that more than 1,000 government bodies might have been overcharged since 1994, the news outlet reported. However, Blue Cross spokeswoman Helen Stojic said in a statement e-mailed to the publication that the fees were not hidden and were stated in every contract. Horton reportedly said the language of the contract was too complex to be understood by a layman. | 
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