Hartford HealthCare loses lawsuit claiming Anthem forced 'catastrophically' low rates

A district judge tossed a lawsuit filed by Hartford (Conn.) HealthCare against Anthem Blue Cross and Blue Shield in Connecticut Wednesday, according to a Hartford Courant report.

In early October, Hartford HealthCare sued Anthem over allegations the insurer changed its emergency care reimbursement policies after the two failed to reach a provider agreement a week prior. As a result, as many as 60,000 Anthem members lost in-network access to Hartford HealthCare's facilities Sept. 30.

In its lawsuit dismissed by Chief U.S. District Judge Janet Hall, Hartford HealthCare alleged Anthem pressured the system to concede "catastrophically" low reimbursement rates by refusing to pay its hospitals directly for emergency care, the report states. The lawsuit claimed Anthem is paying patients directly for emergency care, and the patients then have to turn around and pay Hartford HealthCare, according to the allegations.

Hartford HealthCare argued the practice, which it claims is in "retaliation" to the contract impasse, is illegal, delays payments and burdens patients. Its lawsuit called for Anthem to resume direct payments to Hartford HealthCare immediately.

However, Judge Hall determined Anthem's actions did not violate law. A Hartford HealthCare spokesperson told Hartford Courant, "The judge today dismissed our lawsuit. Hartford HealthCare is reviewing the written opinion before we consider our options."

An Anthem spokesperson did not immediately respond to the publication's request for comment. 

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