BLUE CROSS BLUE SHIELD OF MASS. v. BCS INS. CO.

Nos. 11-2343, 11-2757.

671 F.3d 635 (2011)

BLUE CROSS BLUE SHIELD OF MASSACHUSETTS, INC., et al., Petitioners-Appellees, v. BCS INSURANCE COMPANY, Respondent/Cross-Petitioner-Appellant.

United States Court of Appeals, Seventh Circuit.

Decided December 16, 2011.


Attorney(s) appearing for the Case

Joann Lytle (argued), McCarter & English, Philadelphia, PA, Steven P. McKey , Bryan Cave , Dan J. Hofmeister, Jr. , Kevin D. Tessier (argued), Reed Smith LLP, Chicago, IL, for Petitioners-Appellees.

Mark E. Wilson (argued), Kerns, Pitrof, Frost & Pearlman, Chicago, IL, for Respondent/Cross-Petitioner-Appellant.

Before EASTERBROOK, Chief Judge, CUDAHY, Circuit Judge, and PRATT, District Judge.


EASTERBROOK, Chief Judge.

BCS Insurance Co. is owned by the Blue Cross and Blue Shield insurers ("plans") across the nation (one in each state). BCS is a captive insurer, with the plans themselves as residual claimants. This creates the possibility of conflict if one or more of the plans attempts to have BCS reimburse it for an expense that the plans in other states have not incurred. Conflicts also can arise if some plans have purchased coverage that others did not...

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