Hospitals Sue DOD Over Tricare Underpayments

Law360, New York (April 3, 2013, 2:44 PM EDT) -- A group of hospitals hit the U.S. Department of Defense with a proposed class action in Washington federal court Monday, accusing the agency of failing to properly follow reimbursement agreements after previously wrongly capping payments on outpatient treatments for Tricare beneficiaries.

According to the plaintiffs — five hospitals in Michigan, Vermont and Minnesota — Tricare had mistakenly accepted incorrect calculations made by a contractor as accurate, underpaying about 1,700 hospitals under reimbursement agreements reached after acknowledging it had previously stiffed them on payments for outpatient services....
To view the full article, register now.