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Rehab's Creditor Sues Health Net Over $8.5M In Unpaid Claims

Law360 (February 7, 2019, 10:30 PM EST) -- The creditor for a shuttered Southern California mental health and substance abuse rehabilitation center hit Health Net Inc. with a lawsuit in California federal court on Wednesday, accusing the insurer of denying $8.5 million worth of benefit claims for treatment at the facility.

Morningside Recovery LLC said that Health Net told the Irvine-based facility that it would cover the patients’ claims but went back on its word once the claims were actually filed, according to the complaint, filed by ABC Services Group Inc.

The suit accused Health Net and several affiliates — Health Net of California Inc., Health Net Life Insurance...

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California Central

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Date Filed

February 6, 2019

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