Payer Disputes

Reporting and legal analysis on payer disputes, insurer lawsuits, and out-of-network reimbursement fights affecting healthcare providers.

Aetna Faces Kansas Lawsuit Alleging False Claims and Improper Payment Practices
Payer Disputes

July 8, 2026

Aetna Faces Kansas Lawsuit Alleging False Claims and Improper Payment Practices

Kansas has sued Aetna, alleging violations of the Kansas False Claims Act involving its administration of the State Employee Health Plan, including third-party repricing arrangements and cross-plan offsetting practices.

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Aetna Alleges Physician Network Inflated Claims by More Than $50 Million
Payer Disputes

June 24, 2026

Aetna Alleges Physician Network Inflated Claims by More Than $50 Million

Aetna has filed a federal lawsuit alleging a physician, his wife, and affiliated healthcare entities used out-of-network billing arrangements and the No Surprises Act IDR process to generate more than $50 million in excess reimbursements.

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Arizona Sues MultiPlan and Major Insurers Over Alleged Out-of-Network Payment Scheme
Payer Disputes

June 15, 2026

Arizona Sues MultiPlan and Major Insurers Over Alleged Out-of-Network Payment Scheme

Arizona Attorney General Kris Mayes has filed a lawsuit against MultiPlan and several major health insurers, alleging they participated in a coordinated system that reduced payments to doctors and hospitals for out-of-network care.

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CMS Updates Medicare ABN Form: What Healthcare Providers Need to Know
Payer Disputes

May 27, 2026

CMS Updates Medicare ABN Form: What Healthcare Providers Need to Know

The Centers for Medicare & Medicaid Services (CMS) recently released an updated version of the Advance Beneficiary Notice of Non-Coverage (ABN), Form CMS-R-131. Providers and suppliers participating in fee-for-service Medicare are required to begin using the updated form no later than May 12, 2026.

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California Hospitals Challenge Anthem’s Out-of-Network Penalty Policy
Payer Disputes

May 20, 2026

California Hospitals Challenge Anthem’s Out-of-Network Penalty Policy

The California Hospital Association (CHA) has filed a lawsuit against Anthem Blue Cross over a policy that penalizes hospitals when patients receive care from out-of-network physicians at in-network facilities. The policy, which Anthem began expanding into California in 2026, imposes a 10% reduction in reimbursement for hospital claims involving certain out-of-network providers, including radiologists and physicians participating in scheduled procedures.

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Proposed Legislation Targets Health Insurance Claim Denials
Payer Disputes

May 4, 2026

Proposed Legislation Targets Health Insurance Claim Denials

A new piece of federal legislation is bringing renewed attention to health insurance claim denials and their impact on patients. The proposed Patient Refunds for Bad Denials Act, introduced by members of the U.S. House of Representatives, is designed to hold insurers accountable for high denial rates and increase transparency across the claims process.

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Client Alert: Shifting Payer Policies and Benefit Trends Reshape Healthcare Landscape
Payer Disputes

April 22, 2026

Client Alert: Shifting Payer Policies and Benefit Trends Reshape Healthcare Landscape

A newly announced policy from Anthem Health Plans is drawing criticism from the American Hospital Association and other industry stakeholders. Set to take effect in 2026, the policy would allow Anthem to penalize hospitals when out-of-network providers are involved in a patient’s care, even in situations where hospitals do not directly control those providers.

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California Regulators Penalize Health Net and Anthem Over Dispute and Grievance Failures
Payer Disputes

March 10, 2026

California Regulators Penalize Health Net and Anthem Over Dispute and Grievance Failures

The California Department of Managed Health Care (DMHC) recently announced two major enforcement actions against Health Net of California, Inc. and Anthem Blue Cross. Although the penalties were issued against insurers, the findings have important implications for healthcare providers navigating payment disputes, reimbursement delays, and patient grievance processes.

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Federal Judge Rules Against Insurance Administrator For Underpayment of Medical Benefits
Payer Disputes

January 6, 2026

Federal Judge Rules Against Insurance Administrator For Underpayment of Medical Benefits

In the case of Everett v. UMR, Inc., a federal district court judge recently ruled in favor of an out-of-network doctor who sued an insurance administrator for failing to pay out insurance benefits owed to him under the Employee Retirement Income Security Act (ERISA). As part of its decision, the court rejected the argument that the doctor had an obligation to hold the patient responsible for unpaid portions of the disputed medical expenses.

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Florida Toxicology Lab Wins $6M Verdict Against Blue Cross Licensee
Payer Disputes

December 8, 2025

Florida Toxicology Lab Wins $6M Verdict Against Blue Cross Licensee

After more than 10 years of litigation, American Clinical Solutions (ACS) secured a $3.1 million verdict in a billing dispute against Triple-S Salud, an independent licensee of the Blue Cross Blue Shield Association and a subsidiary of GuideWell. The Florida jury’s decision may set the stage for future victories by providers seeking unpaid claims.

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Anthem’s New Penalty Policy Targets Out-of-Network Billing at In-Network Facilities
Payer Disputes

November 6, 2025

Anthem’s New Penalty Policy Targets Out-of-Network Billing at In-Network Facilities

Anthem Blue Cross and Blue Shield (a unit of Elevance Health) has introduced a policy that could significantly impact how in-network hospitals work with out-of-network physicians. Starting January 1, 2026, Anthem will impose a 10% administrative penalty on the allowed amount for any claim involving out-of-network providers—unless the care qualifies as emergency or has been pre-approved.

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11th Circuit Ruling Could Unravel Strict ERISA Exhaustion Rule
Payer Disputes

October 29, 2025

11th Circuit Ruling Could Unravel Strict ERISA Exhaustion Rule

In Bolton v. Inland Fresh Seafood Corp. of America, Inc., the Eleventh Circuit reaffirmed its strict requirement that ERISA plaintiffs must exhaust a plan’s internal claims process before pursuing litigation—even in cases alleging fiduciary breach.

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ACR Supports New Bill to Penalize Insurers for Delayed Payments
Payer Disputes

August 12, 2025

ACR Supports New Bill to Penalize Insurers for Delayed Payments

The American College of Radiology (ACR), along with the American College of Emergency Physicians (ACEP) and the American Society of Anesthesiologists (ASA), is backing new legislation aimed at holding insurers accountable when they delay payments following Independent Dispute Resolution (IDR) decisions. The bill would strengthen the enforcement of the No Surprises Act by ensuring providers are paid promptly after winning arbitration.

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Zelis and Major Insurers Face Antitrust Lawsuits Over Out-of-Network Payments
Payer Disputes

April 16, 2025

Zelis and Major Insurers Face Antitrust Lawsuits Over Out-of-Network Payments

Several major health insurers and Zelis Healthcare LLC, a third-party health cost management company, are now defendants in multiple class action lawsuits alleging a conspiracy to suppress payments to out-of-network healthcare providers. Filed in federal courts in California, Massachusetts, and Kansas, the suits claim that Zelis and insurers including Aetna, Cigna, Elevance Health, and Humana coordinated efforts to reduce reimbursement rates, raising significant antitrust concerns.

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DOJ Investigates UHC Claims Practices
Payer Disputes

April 2, 2025

DOJ Investigates UHC Claims Practices

As recently reported in The Wall Street Journal, The Department of Justice announced it is conducting an investigation into Medicare Advantage billing practices of United Health Care (UHC).

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UHC in North Carolina Fined $3.4 Million for Claim Handling Practices
Payer Disputes

March 11, 2025

UHC in North Carolina Fined $3.4 Million for Claim Handling Practices

A 4-year investigation by the North Carolina Department of Insurance resulted in a very large fine against United Health Care related to its balance billing practices. The department found that UHC was not doing enough to protect members, who had Emergency Room care or Anesthesia, from balance billing by out of network providers.

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New Insurer Policy and Health Plan Clauses Relating to Fee Forgiveness
Payer Disputes

June 29, 2023

New Insurer Policy and Health Plan Clauses Relating to Fee Forgiveness

I have reviewed a few recent Plan Documents that contain the following wording, “The Covered Person is required to pay the out-of-pocket expenses including Deductbles, Co-pays, or required Plan Parlicipation) under the terms of this Plan. The requirement that You and Your Dependent(s) pay the applicable out-of-pocket expenses may not be waived by a provider under any "fee forgiveness,” "not out-of-pocket," or similar arrangement. If a provider waives the required out-of-pocket expenses, the Covered Person's calm mav be denied and the Covered Person will be responsible for payment of the entire claim. The claim(s) may be reconsidered if the Covered Person provides satisfactory proof that he or she paid the out-of-pocket expenses under the terms of this plan.”

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Federal Court Case Alleges Self-Serving Scheme by UHC in Violation of its Administrative Fiduciary Duties
Payer Disputes

June 29, 2023

Federal Court Case Alleges Self-Serving Scheme by UHC in Violation of its Administrative Fiduciary Duties

In the recently filed case of Popovchak, et al. v. UnitedHealth Group Inc., et al, the plaintiffs, as representatives of a proposed class, put forth significant allegations against various UnitedHealthcare affiliates/subsidiaries (collectively, “UHC”), detailing a scheme in which UHC has drastically enriched itself to the detriment of self-funded plan participants.

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Emergency Room Physicians Facility Wins right to Pursue Claim of Unjust Enrichment/Quantum Meruit Against UnitedHealthcare
Payer Disputes

June 29, 2023

Emergency Room Physicians Facility Wins right to Pursue Claim of Unjust Enrichment/Quantum Meruit Against UnitedHealthcare

In the case of Ecure Ind. Corp. v. United Healthcare Ins. Co., 2023 U.S. Dist. LEXIS 91562 (United States District Court for the Southern District of Indiana), Ecure, who purchased the receivables for the healthcare provider, brought suit against UnitedHealthcare (UHC) for quantum meruit/unjust and for agreed upon account stated. The agreed to account stated cause of action was dismissed but the unjust enrichment/Quantum Meruit argument survived dismissal.  Under Indiana law, a plaintiff alleging unjust enrichment must show: (1) a benefit conferred upon another at the express or implied request of the other party; (2) allowing the other party to retain the benefit without restitution would be unjust; and (3) the plaintiff expected payment. The provider’s Complaint alleges that the Physicians conferred a benefit on United by providing emergency medical services to United's insureds; that the low allowance of their claims provided them with unjust restitution and, as such, the provider was entitled to payment. The Court agreed. We will follow this case and report any developments.

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