Arizona Insurance

American Telephone and Telegraph accused Empire Blue Cross Blue Shield of defrauding AT & T. ’s medical benefits for nearly a decade, companies in excess of hospital bills and pocket the difference.

The charges have been proceedings in Federal District Court in Newark, by AT & T. Reich, still blocked after trials of AT & T. Auditors to examine the records of the empire. The action also names six other Blue Cross organizations charged for the empire.

AT & T has no plans to terminate its contract with Empire, Burke Stinson, a spokesman for AT & T, said yesterday. And he said that legal proceedings against the empire and three other Blue Cross organizations had remained as it has recently had the cooperation agreement with AT & T. examiner, but he said that the suit has not been withdrawn.

The dispute between the richest and largest companies of one of its customers comes at a time when financial difficulties insurers nonprofit loses some of its best customers of insurance companies, rates the most low and say they have a better service. Empire, New York State’s the biggest health insurance fund, lost $ 250 million over the past two years, their reserves and have geschwunden a point of view that the regulatory authorities dangerously low.

Michael Blumenfeld, a spokesman for Empire, said the fraud accusations were unfounded, and noted that the Empire was agreed, AT & T to examine its records. AT & T. ‘objective is the head of filing the complaint, “said Blumenfeld, was to gain access to books. He said, why the Empire had resisted AT & T’s examination requested. The reductions in question

Under its agreement with Empire, AT & T. Hospital pays its personnel costs, but the Empire handles paperwork in exchange for a fee. In the complaint, filed March 19 AT & T. said that its Empire leased the management of their federal health plan, because the scope promised, along discounts on hospital bills, which are available in New York and some other states’ laws Blue Cross - organisms, but not too commercial insurers.

Instead, trials, the Empire fraudulent financial reports sent to AT & T., who have not received rebates paid by hospitals. AT & T. Empire then reimbursed for the increased amounts and insurers to maintain the difference, the costume booking fees.

The suit, the insurer blamed the fraud and extortion, in accordance with the provisions of federal civil law research Undetermined amount of damages the Empire and other related undertakings Blue Cross. They are Blue Cross and Blue Shield of Arizona, Blue Cross Blue Shield of Illinois, Blue Cross and Blue Shield of Michigan, Blue Cross and Blue Shield Mutual of Ohio Northern, Central Benefits Mutual Insurance Company, headquartered in Columbus, Ohio and Independence Blue Cross, headquartered in Philadelphia.

These agencies have agreements with the scope to pay the hospital bills for AT & T. people living in their areas. The bills are the Empire, which sends it to AT & T.

After the complaint was filed, Illinois, Michigan and Arizona organizations agreed that AT & T. Auditors to verify their books, “said Stinson, and negotiations are underway with Ohio and Pennsylvania organizations.

Mr. Stinson was to say how much money AT & T. thought it was excessive. But the fact that AT & T, in court about the case and the fact that the allegations relate almost a decade, pointed out that the amount of money is at stake is considerable.

Mr. Stinson also say that you are invited to AT & T. file on the action, or that evidence of fraud discovery of the company. State is watching

The New York State Insurance Department for overseeing the process, but it has not started an investigation on its own, said Wayne Cotter, director of research department. Mr. Cotter said it was impossible to determine how much money was in dispute in the case and said it was too early to determine the possible impact of litigation could Empire finances.