Bruce F. Botsford v. Blue Cross and Blue Shield of Montana, Inc. Blue Cross and Blue Shield Association

Defendants, Blue Cross and Blue Shield of Montana, Inc. (“Blue Cross”) appeal the district court’s dismissal of Bruce F. Bots-ford’s suit against them for lack of jurisdiction. Because we conclude that the Federal Employees Health Benefits Act (FEHBA) completely preempts Botsford’s claim against Blue Cross, and that his claim thus arose under federal law, we reverse and remand.

I. BACKGROUND

After undergoing a $3,036.00 medical procedure and submitting the requisite paperwork to his FEHBA-covered health plan, Botsford received a reimbursement check for only $915.74 from Blue Cross. The physician who had performed Bots-ford’s procedure was a non-participating provider, and the plan would not pay his bill in full. Botsford paid his physician and did some research. Convinced that Blue Cross had not followed the method of determining reimbursement set forth in the brochure describing benefits that he had received, Botsford brought this suit.

Botsford filed six claims in federal court alleging various state common law causes of action, such as fraud, negligent misrepresentation, and breach of contract. He also alleged one state statutory claim. In that claim, Botsford…