Independence Blue Cross LLC’s $10.4 million priority claim for unpaid health insurance premiums in North Philadelphia Health System’s bankruptcy could leave nothing for general unsecured creditors if the Philadelphia insurer does not agree to take less, NPHS’s bankruptcy lawyers warned in a filing on Wednesday, Philly.com reported. “NPHS is investigating the extent, validity and priority of this claim,” according to the filing, which laid out the worst-case scenario for creditors. The attorneys are also “engaged in negotiations with Blue Cross to consensually reduce the claim,” it said. In all, the bankruptcy estate is expected to have roughly $1 million to distribute to creditors, NPHS attorney Lawrence G. McMichael said Thursday. Vying for that money are unsecured creditors who say they are owed $29 million. NPHS filed for bankruptcy at the end of 2016. Until this month, Independence was one of four creditors on the committee representing the interests of all unsecured creditors. The firm stepped down from the committee, citing a potential conflict of interest.
