HealthNow New York Inc. should face a whistleblower suit alleging that it improperly overpaid health-care claims at the expense of the federal government and New York, a federal magistrate judge recommended.

HealthNow is a member of the Blue Cross Blue Shield Association and administers one of the health-care plans within the Federal Employee Program for government workers. Madelyn Barnes adequately alleged that the company violated the False Claims Act by failing to stop a payment processing software error that improperly caused HealthNow to overcharge the governments, Magistrate Judge H. Kenneth Schroeder Jr. of the US District Court for the Western ...

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