Humana has filed a lawsuit against ChenMed, which operates medical centers for older patients, in Delaware over breach of contract and other alleged harms, according to a heavily redacted Nov. 7 court filing.
Humana and ChenMed jointly operate JenCare Senior Medical Center, a service provider for Medicare-eligible patients operating in multiple locations across at least five states. In its lawsuit, Humana alleged that ChenMed imposed license fees on JenCare in 2024 due to financial struggles.
“ChenMed unilaterally decided to impose improper technology license fees on JenCare to make money at Humana’s expense,” the filing says. “ChenMed is using the fees to siphon off substantially all the profits from JenCare in order to keep 100% of those monies for itself.”
Humana further called ChenMed’s fees an “abuse” of control, claiming they were imposed by ChenMed without consulting co-owner Humana and reached the “tens of millions.” The insurer said this violates the terms of their agreements.
Humana is requesting that damages are paid to itself and JenCare.
Editor’s note: Becker’s has reached out to ChenMed for comment and will update this story as more information becomes available.
At the Becker's 5th Annual Fall Payer Issues Roundtable, taking place November 2–3 in Chicago, payer executives and healthcare leaders will come together to discuss value-based care, regulatory changes, cost management strategies and innovations shaping the future of payer-provider collaboration. Apply for complimentary registration now.