Blue Cross employees charged with defrauding state $500K

Three Blue Cross Blue Shield of Mississippi employees are accused of conspiring with 11 state employees to defraud the state of $500,000.

Mississippi Attorney General Jim Hood said the employees of Blue Cross, which administers the State Employee Health Insurance Plan, processed claims of up to $44,000 to at least 11 state employees for reimbursement for medical procedures that never occurred, according to WAPT.

The state employees cashed the checks and kicked back some of the money to the Blue Cross employees, with the total loss to the state equaling more than $500,000, reports Forbes.

The attorney general office's investigation into the fraud scheme began when a participant returned her check to Blue Cross Blue Shield, which then turned it over to authorities. The insurer has cooperated with the attorney general's investigation and made a prompt and full refund to the state, reports WAPT.

All defendants face charges of conspiracy, insurance fraud, mail fraud and false representation. They each face a maximum of three to five years in prison if convicted, WTVA notes.

To learn more:
- see the WTVA story
- check out the Forbes piece
- read the WAPT article

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