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Mississippi: 7 plead guilty to insurance fraud

Seven people have pleaded guilty to charges of insurance fraud involving the State and School Employees Health Insurance Plan.

The pleas were entered Friday and Monday in Rankin County Circuit Court. Charges are pending against seven others.

Blue Cross/Blue Shield of Mississippi administers the health plans for the state.

An indictment alleged three Blue Cross/Blue Shield employees processed claims for up to $44,000 to at least 11 state employees for reimbursement for medical procedures that never occurred.

The attorney general’s office said the state employees cashed the checks and kicked back some of the money to the Blue Cross/Blue Shield employees, with the total loss to the state equaling more than $500,000. Authorities said Blue Cross/Blue Shield made full restitution to the state.

The investigation began when a participant returned her check to Blue Cross/Blue Shield, which contacted authorities. Authorities said the company cooperated with the investigation.

Forbes

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Written by lordsinsurancelog

September 13, 2011 at 9:16 pm

Posted in Insurance News