Jackson Hospital in Montgomery has filed a lawsuit against Blue Cross Blue Shield of Alabama, alleging that the insurer’s underpayment practices have led to the hospital’s financial instability and bankruptcy. The hospital claims it receives 30-40% less in reimbursements compared to other local facilities, such as Baptist Health. Jackson Hospital is seeking over $250 million in damages, arguing that Blue Cross’s actions have destabilized Alabama’s healthcare system. Blue Cross counters that it has increased reimbursement rates and attributes the hospital’s financial woes to mismanagement.
