BCBS Minnesota Beats Texas Hospital's Underpayment Suit

Law360 (October 3, 2019, 2:24 PM EDT) -- A Texas federal judge has tossed a suit alleging Blue Cross and Blue Shield of Minnesota violated the Employee Retirement Income Security Act by not properly paying for out-of-network services, finding a Texas hospital didn’t have the authority to pursue claims for allegedly breaching patients’ health plans.

In his order Wednesday, U.S. District Judge Reed C. O'Connor found that Victory Medical Southcross LP, which used to be called Innova Hospital San Antonio LP, didn’t have the assignment agreements necessary to bring benefit claims against BCBSM Inc.

While the hospital was looking to recover on eight patients’ claims, it only provided an...

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