Talk of The Villages Florida - View Single Post - Villages Health Bankruptcy
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Old 08-23-2025, 10:48 AM
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Originally Posted by Pat2015 View Post
Because it’s going to be a fire sale. Also, it’s $360 million owed to the government, and Florida Blue is filing against them for another $25 million. Lot’s more insurance companies will be adding on as the Specialists take all kinds of insurance and the fraudulent billing scheme would not just be the government and BCBS.
As far as I can tell, the $25 million is part of the overall $360 million. I’ve been asking myself, why would Florida Blue dive into this hornets nest to recover $25 million, which is chump change for a Company like Blue Cross and Blue Shield? My best guess is it’s not about the $25 million, it’s about preventing the possibility of a dangerous legal precedent being set. If the bankruptcy court ultimately lets TVH off the hook for the $360 million, then CMS might go after the likes of United Healthcare, Florida Blue, and Humana to recover the funds. If CMS were to successfully do that, it would set a legal precedent that any health care provider, similar to TVH, could simply file chapter 11 and force over billing liabilities onto the insurance companies they have MA contracts with. That scenario would create a very dangerous precedent for insurers, potentially exposing them to unquantifiable liabilities and change the whole landscape of the Medicare Advantage business for them.