BCBS Sues Prison Contractor Corizon Over Missed Reimbursments

On June 14, 2022, Blue Cross Blue Shield of Michigan filed an action against Corizon Healthcare Incorporated in Macomb County Circuit Court in Michigan seeking recovery of $3,410,136.51 allegedly due the plaintiff under an “administrative services contract … in which Plaintiff processed medical claims for incarcerated individuals at Michigan correctional facilities serviced by Defendant.”  The case was removed to the Eastern District of Michigan on Thursday.

Plaintiff describes itself as a “nonprofit mutual insurance company,” and alleges that Defendant “is a prison healthcare contractor in the United States that provides services nationwide” and specifically “at over 30 facilities across the State [of Michigan],” which facilities are the subject of the contract in issue. The contract allegedly incepted in December 2015, and Defendant allegedly “terminated” the contract effective September 29, 2021. Plaintiff alleges that “… pursuant to the terms of the Contract, Defendant is responsible for reimbursing Plaintiff for all claims incurred prior to September 29, 2021…” Those unreimbursed claims allegedly total $3,410,136.51.

Plaintiff alleges three causes of action: Breach of Contract; Account Stated; and Quantum Meruit. In addition to seeking the amount of the allegedly unpaid claims, Plaintiff seeks “pre-suit and pre-judgment interest, costs, and attorneys’ fees.”

Plaintiff’s counsel is Kitch Drutchas Wagner Valitutti & Sherbrook.