[drducat]

Originally Posted by tophcfa

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.

The court can't discharge the 361 million owed the federal government CMS. Nor can it discharge a penalty that is mandatory for things like this. It won't matter if it is fraud or otherwise a penalty can't be included.