Blue Cross NC sues Charlotte child therapy practice over alleged billing fraud

CHARLOTTE — Blue Cross Blue Shield of North Carolina is suing a Charlotte pediatric therapy practice over fraud allegations.

The insurance company accuses Child and Family Development, Inc. of submitting bills for fake claims between 2017 and 2022, The Charlotte Observer reported.

The lawsuit was filed in early September after an earlier attempt to sue was dismissed due to procedural issues.

The case has been assigned to the North Carolina Business Court, which handles complex business litigation.

According to court documents, Blue Cross NC is asking the court to order C&FD to return the improper payments, including money collected from patients. Blue Cross NC is seeking at least $1.1 million in damages, along with interest, legal fees, court costs and punitive damages.

An attorney for C&FD told The Observer they deny the allegations.