American Apparel Health Plan Shirked Bill, Hospital Says

Law360, New York (August 7, 2013, 2:29 PM EDT) -- Cedars-Sinai Medical Center on Tuesday sued American Apparel Inc. in California state court, alleging the clothing retailer’s self-funded employee health insurance plan had stiffed the hospital out of about $840,000 contractually owed for the care of one of its former employees.

The Los Angeles-based hospital claims it had been given express authorization to provide medically necessary services an American Apparel employee and her premature baby by the company’s plan administrator, Anthem Blue Cross of California, but says the retailer has failed to pay the full amount...
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