Hospitals reach proposed $7 million deal with employees

Five major Montana hospitals have reached a preliminary $7 million agreement to settle claims made by employees that the hospitals engaged in a kickback scheme in which the hospitals over-paid for health insurance.

The hospitals continue to deny any wrongdoing and insist no harm was done, but both sides agreed to settle to avoid a lengthy and expensive legal process, according to documents filed earlier this month in U.S. District Court in Great Falls.

In December 2018, the group of employees filed a complaint saying the hospitals each signed an agreement with Blue Cross and Blue Shield of Montana in 2012 to give the insurance company their employee health plan business for six years. In exchange, Blue Cross and Blue Shield gave the hospitals more than $20 million.

The employees said they only found out about the arrangement in 2018 and that Blue Cross and the hospitals “have been secretive about the terms of the agreement.” Blue Cross and Blue Shield of Montana was not named as a defendant in the lawsuit.

Read more: https://ravallirepublic.com/news/state-and-regional/govt-and-politics/article_ebae930d-09f0-52d3-b534-2fa492a354f9.html