Health Groups Sue La. Over Hurricane Isaac Insurance Rule

Law360, New York (September 18, 2012, 7:22 PM EDT) -- The Louisiana Hospital Association and Louisiana State Medical Society filed suit against the state insurance commissioner Monday to block parts of an emergency rule he issued to help Hurricane Isaac victims.

The health groups argued that Louisiana Insurance Commissioner Jim Donelon ran afoul of the state constitution by temporarily mandating that in-network and out-of-network claims for emergency services be treated identically. The law also unconstitutionally bars providers from “balance billing” insureds for emergency services, according to the complaint, filed in Louisiana state court.

In balance billing,...
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