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Ben Glass
Ben Glass
Attorney • (703) 584-7277

How CareFirst BlueCross Blue Shield Wastes Your Money

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My family is insured under an individual health insurance policy with CareFirst BlueCross Blue Shield here in Virginia. Every so often I get a letter from a law firm called Seidel Subrogation Associates, LLC, which demands information from me, on behalf of CareFirst BlueCross BlueShield.

Someone is paying to send out the letters. Probably me since I am a policy holder.

CareFirst has obviously shared some private information with this law firm, and the letter states that “federal law” allows this information sharing.


The letter makes the false claims that

1. My insurance contract requires reimbursement for money received from CareFirst if I subsequently settle a third party tort settlement. (It doesn’t–Virginia law expressly prohibits this type of “subrogation/reimbursement” obligation in individual health insurance policies.

2. The contract gives CareFirst BlueCross Blue Shield the right to recover payments resulting from accidental injury caused by another person. (It doesn’t–same law.)

3. That disclosures about my famiy’s medical information that CareFirst has made to this firm is permissible under federal and state law. (How could that be if there are no such provisions in my policy and Virginia law prohibits such provisions?)

No, this isn’t a policy covered under ERISA. Yes, I’ve written to CareFirst and Seidel before pointing this out. Yes, they have both ignored me.

The next time you see an insurance company moaning about rising costs consider how much money they waste every year sending out these letters to thousands of Virginia insureds.