6 legal moves involving payers

Here are six recent lawsuits and case updates involving payers:

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1. The liquidating trust for Verity Health sued MultiPlan and a cast of major insurers for allegedly participating in a “hub, spoke, and rim” agreement to reduce out-of-network reimbursement for providers. The lawsuit claims the move cost providers around the country $90 billion.

2. An Oct. 27 lawsuit from UnitedHealthcare alleges hospital staffing company TeamHealth upcoded on emergency room bills, costing the insurer about $100 million since 2016. TeamHealth CEO Leif Murphy said the move is an effort to draw attention away from a lawsuit TeamHealth filed against the insurer in Nevada over allegedly short changing more than 11,000 claims worth $10.5 million. 

3. In an update to Optum’s lawsuit against Cano Health New Mexico, a judge ruled that Cano Health must destroy patient health records allegedly stolen by a former OptumCare employee. Since the lawsuit was filed Sept. 30, both employees mentioned in the complaint have been fired. 

4. GS Labs is accusing Minnesota-based Medica of withholding $10 million in payments for COVID-19 tests. The lawsuit alleges Medica has only paid 8 percent of its members’ claims, leaving over 30,000 outstanding claims. 

5. Anthem asked state regulators in Virginia to investigate Norfolk-based Sentara Healthcare over alleged anticompetitive behavior. The complaint follows Sentara Healthcare threatening to end its Medicaid and Medicare contracts with the payer. 

6. The New York Supreme Court is halting New York City’s retiree Medicare contract after calling the rollout “irrational, and thus arbitrary and capricious” on Oct. 21. The court ordered the city to suspend its Oct. 31 deadline for retirees to opt in to the new plan under the Alliance, a collaboration between EmblemHealth and Empire Blue Cross Blue Shield.

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