Humana Can't Beat Hospital Chain's Medicare Underpay Suit

By Jeff Overley (June 25, 2018, 7:44 PM EDT) -- Humana Inc. can't escape a breach of contract suit brought by hospital giant Prime Healthcare alleging Medicare Advantage underpayments, a California federal judge ruled Friday, finding that the case isn't barred by the Medicare Act.

The ruling from U.S. District Judge Virginia A. Phillips found that Prime Healthcare Services Inc.'s allegations don't "arise under the Medicare Act" and therefore aren't preempted by the federal law. Notably, Humana had previously been granted several motions to dismiss, and Prime had been warned that it would not be allowed to amend its complaint again if Humana prevailed another time.

King & Spalding LLP partner...

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