BlueCross/BlueShield - Lawsuit Filed

LakinChapman LLC is taking on BlueCross BlueShield of Illinois for overcharging customers on health insurance premium rates with a class action case filed in Cook County court.

The complaint alleges many of the insurance company's Medicare Supplement policies are "area-rated," meaning that different premium rates are charged based on where the insured resided. BlueCross BlueShield of Illinois has admitted that it has systematically overcharged customers who have a billing address in a higher-rated area than their actual place of residence.

The situation is not uncommon when older customers have someone else, such as a relative, paying their bills and taking care of financial matters. For example, a senior citizen who has lived in Illinois all their life but has bills sent to a relative in Indiana would be charged an out-of-state rate. BlueCross BlueShield said that its computer system can only accommodate one mailing address and that this address is used to determine the premium rate. Because of this poorly designed system, numerous customers have apparently been overcharged for their insurance.

The class action lawsuit demands that BlueCross BlueShield provide a full accounting of this practice to determine the number of customers who have been overcharged in this way. It accuses the insurance company of breach of contract, unjust enrichment and violation of the Illinois Consumer Fraud Act.

LakinChapman partner Brad Lakin said, "Our firm is committed to defending the rights of consumers who are defrauded by corporate interests. Class action lawsuits are a powerful tool to compensate consumers and change unfair corporate practices."

LakinChapman, LLC regularly represents consumers in class action litigation. Those seeking more information may contact the firm at classaction@lakinchapman.com, or call (800) 851-5523.