7th Circ. Frees Hospitals From Refunding Mistaken Payments

Law360, New York (February 5, 2014, 8:28 PM EST) -- The Seventh Circuit affirmed on Wednesday a lower court's summary judgment that a hospital doesn't have to return $1.7 million in a patient's treatment expenses to a health plan that later discovered the patient wasn't covered.

In a strongly worded opinion, the appeals court reprimanded Kolbe & Kolbe Health and Welfare Benefit Plan for its "absurd" attempts to collect legitimate expenses after its own error: Kolbe had determined the patient's coverage ineligibility well after treatment.

But the court also had words for the Medical College of...
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