HAVRE, Mont. (NMB) – In response to a weekend story stating that five hospitals in Montana has settled a lawsuit claiming they made a deal with an insurer to inflate employee health coverage prices in return for $26 million, Northern Montana Hospital denies the plaintiffs’ allegations. In an attorney’s statement, Northern Montana Hospital specifically denies that the Hospital or its plan participants paid excessive administration fees.
The insurance premiums paid by Northern Montana Hospital plan participants from 2012 to 2017 were well below the industry standard, have not increased for several years, and the coverage provided was above industry standard. The Hospital retained nationally recognized experts and consultants both when it entered the transaction with Blue Cross/Blue Shield of Montana and when the plaintiffs filed this litigation. The transaction with Blue Cross/Blue Shield was reviewed and approved by the Department of Justice. All of the experts and consultants concluded that Northern Montana Hospital acted appropriately and that no part of the transaction violated the law.
The insurance plan provided by Northern Montana Hospital to its employees is the same plan provided to management, medical staff, and administration. The Hospital believes it was a good plan for all and that Blue Cross/Blue Shield provided many advantages, including the biggest provider network, which is very important for all persons covered under the plan. The Hospital continuously evaluates health insurance plans and rates and strives to provide the best coverage for the price to all of its employees and staff.
