Lawsuit seeks a judgment to ensure Blue KC members are not required to pay GS Labs’ COVID-19 testing reimbursement demands
For Immediate Release: July 21, 2021
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KANSAS CITY, MO. (July 21, 2021)—Blue Cross and Blue Shield of Kansas City (Blue KC) has filed a lawsuit in the United States District Court for the Western District of Missouri against GS Labs, LLC.
As part of our ongoing due diligence in processing COVID-19 diagnostic testing claims, record discrepancies and inflated reimbursement demands were discovered in bills submitted by GS Labs, LLC. For example, GS Labs demanded $380 for rapid antigen tests that cost less than $20 at wholesale. Other comparable providers in the area accept approximately $35 to administer this test.
After receiving GS Labs’ claims, attempts were made to negotiate reasonable reimbursement rates for all substantiated diagnostic testing claims submitted to Blue KC. GS Labs continued to insist on unreasonable reimbursement rates, approximately ten times higher than other providers in the Kansas City metropolitan area.
“Throughout the pandemic, Blue KC worked diligently to provide support for our members,” said Dr. Greg Sweat, Blue KC Senior Vice President and Chief Medical Officer. “To date, we have completed processing and payment for more than 500,000 COVID-19 diagnostic testing claims and worked with approximately 1,300 providers who have accepted reasonable reimbursement rates for these services.”
This lawsuit seeks a judgment declaring Blue KC and our members are not required to pay GS Labs’ unreasonable, inflated reimbursement demands.
“Efficient and effective testing for COVID-19 is a key measure to restoring public health and ending the pandemic. We care about all those insured by Blue KC, our business partners and our community and remain committed to doing what we can to address issues related to overall health and well-being,” Dr. Sweat added.
We will provide updates during this ongoing process at BlueKC.com/update.
A Blue KC spokesperson is available to answer additional questions and for interviews. Please call 816-678-8808 to schedule.
About Blue Cross and Blue Shield of Kansas City
Blue Cross and Blue Shield of Kansas City, the largest not-for-profit health insurer in Missouri and the only not-for-profit commercial health insurer in Kansas City, has been part of the Kansas City community since 1938. Blue Cross and Blue Shield of Kansas City provides health coverage services to more than one million residents in the greater Kansas City area, including Johnson and Wyandotte counties in Kansas and 30 counties in Northwest Missouri. Our mission: to provide affordable access to healthcare and to improve the health of our members. Blue Cross and Blue Shield of Kansas City is an independent licensee of the Blue Cross and Blue Shield Association. For more information on the company, visit its website at BlueKC.com.