Tuesday, May 12, 2015

Health Care Fraud Perpetrated by PPACA Designers

Recall the role health insurers played in the design of President Obama's health reform, The Patient Protection and Affordable Care Act, abbreviated as PPACA.  One company discovered a multi-decade fraud employed by Blue Cross Blue Shield of Michigan.

It turns out that one of the reasons workers have been paying more for their coverage is allegedly a common practice among insurers:  charging their employer customers unlawful hidden fees.

The fees came to light when Hi-Lex Controls, an automotive technology company, took Blue Cross Blue Shield of Michigan (BCBSM) to court in 2013 after becoming suspicious that the company had been systematically cheating it over 19 years. After reviewing evidence in the case, a judge ordered that BCBSM stop charging the hidden fees and pay Hi-Lex $6.1 million.
This is the group President Obama's PEU health reformer Nancy-Ann DeParle embraced wholeheartedly in creating PPACA.  What did these long term cheats do to ensure their profitability at the expense of the "customer"?  They stole long before PPACA and likely rigged new features to ensure their profits. 

It's also one more case of healthcare fraud where no one goes to jail.