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Blue Cross Blue Shield of Tennessee settles suit in New Jersey

AP/Newark Star-Ledger, August 12, 2008

Blue Cross Blue Shield of Tennessee has agreed to pay $2.1 million to settle a federal complaint over Medicare charges in New Jersey. The U.S. Justice Department said the settlement involves Riverbend Government Benefit Administrators, a BlueCross subsidiary that provides Medicare payment services for about 4,300 healthcare providers in 47 states. A BlueCross statement said the company did not adjust cost-to-charge ratios quickly, resulting in overcharges to several New Jersey hospitals while processing and paying Medicare claims.