A substance abuse treatment provider in central Iowa has withdrawn its federal lawsuit against Wellmark Blue Cross and Blue Shield that had alleged the insurance provider owes them millions of dollars in unpaid claims.
The St. Gregory Retreat Center says it is dismissing its lawsuit and admitted its original claims of fraud and misconduct, including statements made during a 2016 news conference, were ultimately without merit. A federal court came to a similar conclusion when it dismissed St. Gregory’s claims against the insurer earlier this year.
In a news release, St. Gregory officials apologized for statements and actions that the release says “exacerbated a two-year long contract dispute over the manner and accuracy of claims the substance abuse treatment center submitted to Wellmark. Although that dispute is now resolved, St. Gregory’s is no longer a provider in Wellmark’s network.” Wellmark has dismissed additional fraud and RICO claims it filed against St. Gregory’s following the announcement of the dismissal of the lawsuit.
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