Why Are Detroit Schools Broke?

Aug 31, 2009

Last year Blue Cross Blue Shield of Michigan, which has the contract for health care for Detroit Public School employees, got caught overcharging the school system. DPS was charged three million too much on medical claims and it was charged over $400,000 too much in late fees!

Why is a supposed non-profit company charging a school system enormous late fees in the first place? How did three million dollars too much get charged for medical claims? And how many other suppliers look on the schools as a way to rack up money? No wonder the DPS has a budget crisis.

While the DPS Financial Management czar, Robert Bobb, has been making headlines denouncing some school employees over lost computers, big companies like Blue Cross have been gouging the children of Detroit through contracts with DPS.