Law360 Quotes Partner Matt Lavin on $40M Michigan Lawsuit

August 1, 2019

Source: Law360

Blue Cross Blue Shield of Michigan was hit with a $40 million lawsuit Wednesday alleging the insurer improperly slashed its reimbursement rates for substance abuse treatment facilities, choosing to line its own pockets instead of covering the claims even as the state faced a “worsening opioid epidemic.”

Matthew M. Lavin, an attorney for the facilities, told Law360 on Wednesday that many insurers haven’t really been complying with the MHPAEA, a fact that the opioid epidemic has helped bring to light. BCBSM knew that it could get away with low-paying claims for those dealing with substance use or mental health issues because they wouldn’t get a lot of patient appeals, Lavin said.

“This suit is about standing up for the rights, both under federal and state law, on behalf of providers and the people they treat,” Lavin said.

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