Blue Cross Blue Shield of Illinois Guilty of Medicare Fraud

According to press reports, Blue Cross Blue Shield of Illinois pleaded guilty to eight felonies concerning medicare fraud in Federal Court in East St. Louis on July 16, 1998. They have agreed to pay $4 million in criminal fines and $140 million in a civil settlement. The health insurer was charged with lying to auditors and destroying documents. On the basis of exaggerated performance reports, the corporation had received $1.3 million in bonus payments.

By August, Blue Cross Blue Shield will no longer handle medicare paperwork for Illinois and Michigan. Two former managers have pleaded guilty to conspiracy, wire fraud and obstruction of a federal audit. Five other executives have been indicted.


(Editor's Note: This is obviously an ominous development in healthcare when Blue Cross Blue Shield is convicted of fraud. wln)