The proposed class-action lawsuit was filed by Newark, Calif.-based Saloojas, an out-of-network laboratory that operates seven specimen collection sites. The company said the insurer is required to fully cover all its members’ COVID-19 diagnostic testing services and issue reimbursements during the public health emergency, regardless of network status.
Saloojas alleges that Blue Cross denied and underpaid claims made by plan members and forced the company into a “paperwork war of attrition” to deter it from filing all the necessary claims for testing services, according to the report.
Saloojas accuses Blue Cross of violating the Families First Coronavirus Response Act, Coronavirus Aid, Relief, Economic Security Act and the Employment Retirement Income Security Act, according to the report. The company also alleges that due to the payer’s “disinformation campaign” and use of mail and wires to further its improper record request scheme, Blue Cross’ actions constitute racketeering.
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