St. Gregory Retreat Center admits billing errors and dismisses lawsuit against Wellmark Center admits its original claims of fraud and misconduct were ultimately without merit
DES MOINES, IA — St. Gregory Retreat Center announced today it was dismissing its lawsuit against Wellmark Blue Cross and Blue Shield and admitted its original claims of fraud and misconduct, including statements made during a 2016 press conference, were ultimately without merit. Earlier this year, a Federal Court came to a similar conclusion when it dismissed St. Gregory’s claims against the insurer. St. Gregory Retreat Center is a provider of adult substance abuse treatment in Iowa.
St. Gregory officials apologized for statements and actions that 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. As a result, Wellmark members who seek treatment at St. Gregory’s may be responsible for the difference between what their Wellmark plan pays and the amount St. Gregory’s charges.
As a result of St. Gregory’s announcement, Wellmark has dismissed additional fraud and RICO claims it filed against St. Gregory’s.
Wellmark members seeking an in-network provider can choose from more than 45 similarly licensed substance abuse treatment facilities throughout Iowa.