DETROIT, MI (AP)-- Blue Cross Blue Shield of Michigan has lost an appeal in a critical case over hidden fees charged to health insurance customers.
A court has upheld a $5.1 million verdict, plus interest, in favor of Hi-Lex Controls, a Detroit-area auto supplier. Hi-Lex says Blue Cross for years added costs to its contract that weren't properly disclosed.
Detroit federal Judge Victoria Roberts found Blue Cross was "self-dealing" and violating labor law. An appeals court unanimously affirmed her ruling.
The decision Wednesday is important because it sets a precedent for dozens of similar lawsuits worth millions of dollars that are pending in front of Roberts.
Blue Cross spokeswoman Helen Stojic says the company is disappointed. The insurer has defended its actions, claiming the charges were allowed under the contracts.