September 28, 1994 Massachusetts Blue Cross
Blue Cross and Blue Shield of Massachusetts Inc. will pay over $2.7 Million Dollars to settle claims asserted in a qui tam action filed by Mary Jane Blackman, a former employee of C & S Administrative Services for Medicare. The allegations of the case were that Massachusetts Blue Shield misrepresented and inflated the number of claims and reviews it processed in periodic reports submitted to the federal agency HCFA. Since the federal agency used the information to determine the company’s costs in administering Medicare, the false data resulted in larger reimbursements than Massachusetts Blue Shield was entitled to receive, in 1991, 1992 and 1993.
As part of the settlement, Ms. Blackman will receive over $500,000 for having filed the qui tam case.
See U.S. Dept of Justice Press Release 9/28/94