May 2002

Discrimination Case Against Blue Cross Reversed

Wichita, Kan. - The Kansas Supreme Court has reversed a jury’s verdict that required Blue Cross and Blue Shield of Kansas to pay $1.6 million in damages to a chiropractor.

During an August 2000 trial, a jury decided that Blue Cross had breached its contract to reimburse services performed by Wichita, Kan., chiropractor Dr. Mark Beck. The jury also said Blue Cross discriminated against Kansas chiropractors by failing to reimburse them the same way the company reimbursed other health-care providers who performed similar services.

Beck operated three chiropractic clinics in Wichita. Each clinic contracted with Blue Cross to provide chiropractic services to people insured by the company. During the trial, Beck argued that Blue Cross’ policy that considered the spine to be one unit was unfair. The policy allowed for payment for one adjustment to the spine, even if numerous adjustments were performed on multiple areas of the spine.

In its recent opinion, the Supreme Court ruled that Blue Cross did not discriminate against Beck because the doctor knew what their payment policies were when he signed the contracts.

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