Keller Rohrback L.L.P. Announces Investigation Into Blue Cross Blue Shield of Michigan Regarding Fees

SEATTLE, May 28, 2014 (GLOBE NEWSWIRE) -- Attorney Advertising. Keller Rohrback L.L.P. is currently investigating Blue Cross Blue Shield of Michigan ("BCBSM") regarding its alleged practice of charging hidden and undisclosed fees to ERISA welfare plans for which BCBSM serves as a third party administrator under administrative services contracts.

Recently, a federal appeals court upheld a $6.1 million trial judgment that found BCBSM defrauded a Michigan auto parts maker by hiding the fees it was charging the company to process employee healthcare claims. It was the Court's opinion that the trial court was correct in finding that BCBSM breached its fiduciary duties under ERISA and committed prohibited transactions by "inflating hospital claims with hidden surcharges in order to retain additional administrative compensation."

"BCBSM committed fraud by knowingly misrepresenting and omitting information about the Disputed Fees in contract documents," the appellate court said, also concluding that BCBSM not only hid its fees from client plans, but also engaged in a "course of conduct designed to conceal evidence" of its ERISA violations.

The plaintiffs in the case are an ERISA plan and its plan sponsor/fiduciaries that asserted they were "unaware of the existence of the Disputed Fees" until BCBSM "disclosed to the company in a letter the existence of the fees and described them as 'administrative compensation.'"

If you are a plan fiduciary of an ERISA welfare benefit plan whom BCBSM belatedly informed about hidden fees and if you would like to pursue a claim, please contact attorney Gretchen Obrist, or paralegal Jennifer Dallape for additional information at (800) 776-6044 or via email at to assess your plan and potential claims.

Keller Rohrback, with offices in Seattle, Phoenix, New York, and Santa Barbara, is one of America's leading law firms handling retirement and employee benefit plan litigation, including challenging hidden or excessive fees in ERISA plans. The firm is committed to helping employees and retirees protect their retirement savings and other employment-related assets and avoid waste and abuse in the context of ERISA plans. Keller Rohrback attorneys represent employees and fiduciaries in litigation and offer advice and counseling on a wide range of employee benefit issues. Keller Rohrback's trial lawyers have obtained judgments and settlements on behalf of clients in excess of seven billion dollars.

Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.

Keller Rohrback L.L.P.
Gretchen Obrist
(800) 776-6044

Source:Keller Rohrback L.L.P.