South Bend Employers Sue Company Over Unpaid Health Claims

SOUTH BEND, Ind.-Some of the South Bend area’s largest employers have filed lawsuits against a company hired to process health insurance claims for their employees.

The employers allege that they paid millions to Healthcare Resources Group, but the company never sent that cash along to health care providers. As a result, some providers have come after patients for their money, several of the plaintiffs argue in court documents.

A message seeking comment was left Wednesday by The Associated Press at the office of Terry A. Grant, president and chief executive officer for HRG. He declined to comment to the South Bend Triune on Tuesday.

The employers-including AM General, St. Joseph County’s government, the city government of South Bend, Memorial Health Systems, Quality Dining and 1st Source Bank -are self-insured, meaning they finance payment of their own claims, but they contract their processing out to a third-party administrator.

AM General’s lawsuit claims it paid the firm more than $3 million for worker claims that have yet to be paid. An HRG employee last week told Gary Wuslich, the automaker’s vice president of human resources, that the funds were “missing.”