The Pennsylvania Supreme Court has revived a series of class action suits against the state’s four Blue Cross and Blue Shield health plans alleging they violated the Nonprofit Corporation Law of 1988 by maintaining excessive surpluses.
In a 15-page opinion in Ciamaichelo v. Independence Blue Cross, the justices reversed a Commonwealth Court ruling that dismissed the suits on the grounds that the insurance commissioner has exclusive jurisdiction to deal with matters involving rates because the “filed-rate doctrine” prevents collateral attacks on rates and reserves approved by the commissioner.
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