BlueCross BlueShield of Western New York and Buffalo, N.Y.-based Catholic Health have settled a lawsuit and renewed a three-year contract agreement, according to Buffalo Business First.
Last year, HealthNowNY — BCBS of Western New York's parent company — filed a lawsuit against Catholic Health for "false, misleading and defamatory advertisements" in church bulletins and news sources, according to the report. Although BCBS of Western NY's Medicare Advantage products did allow customers to receive care from Catholic Health, HealthNowNY said the advertisements led senior citizens to believe otherwise.
However, as part of a new contract between the organizations, the litigation has been withdrawn. The new contract gives BCBS of Western NY members access to Catholic Health hospitals and the Catholic Medical Partners network through 2018.
"At a time when rising medical costs drive health insurance premiums for individuals and employers across western New York, BlueCross BlueShield has negotiated a fiscally responsible contract and rates with Catholic Health and the physicians of Catholic Medical Partners," said Ronald Mornelli, senior vice president and chief network officer for HealthNow NY, according to the report.