New Jersey hospital, Horizon BCBS end 6-year legal feud

Horizon Blue Cross Blue Shield of New Jersey and Saint Peter's University Hospital in New Brunswick, N.J., settled a six-year legal battle over Horizon's tiered insurance system, according to an April 7 report at NJ.com.

Saint Peter's sued Horizon in 2015, accusing the insurer of wrongly excluding it from the top tier in its Omnia plan. Under the Omnia plan, Horizon members who use a "tier 1" provider can save out-of-pocket costs. Members who use "tier 2" providers, the designation Saint Peter's was given, face higher out-of-pocket costs. 

In its lawsuit, Saint Peter's argued its tier 2 designation would cost the hospital millions of dollars and jeopardize its long-term success, according to NJ.com.

The settlement means Horizon and Saint Peter's won't participate in a trial that was set to begin the week of April 5. Details about the settlement weren't released. 

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