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Blue Cross flags 'body‑brokering' and fraudulent residential treatment schemes that moved Native patients out of state
Summary
Blue Cross of Wyoming told a legislative panel May 20 that fraudsters have recruited vulnerable people — including reservation residents — onto marketplace health plans and transported them to out‑of‑state residential programs that billed insurers for treatment that in many cases was not provided.
Blue Cross Blue Shield of Wyoming told a legislative committee that a rising fraud pattern — often called “body brokering” — has trafficked vulnerable people, including some Native American reservation residents, to out‑of‑state residential treatment sites that did not deliver promised care while billing insurers for therapy, medication management and other services.
Blue Cross general counsel Raymond Redd and clinical director Amy Skalswak described a scheme the insurer first noticed in late 2024 and into 2025: people (often unsheltered or transient) are recruited or offered transport to purported treatment facilities in other states, and those centers then submitted insurance claims even when services were minimal or unsafe.
Why it mattered to the committee: testimony and documentation suggested hundreds of claims tied to residential programs in multiple…
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