AT&T 'Scheme' With Insurer Violates ERISA, Hospital Says

By Melissa Daniels (June 2, 2016, 7:29 PM EDT) -- A Houston hospital sued AT&T in Texas federal court on Wednesday, accusing the company of violating the Employee Retirement Income Security Act, describing a payment practice between the company's benefits plan and UnitedHealthcare as "an embezzlement scheme" that stiffed the hospital on patient bills.

RedOak Hospital LLC filed a complaint accusing AT&T Inc., AT&T Savings and Security Plan and plan administrator Larry Ruzicka of allowing co-fiduciary and third-party insurer UnitedHealthcare to embezzle funds to compensate it for a trumped-up "overpayments" made by fully insured "stranger plans" funded by United. 

RedOak argues that AT&T violated ERISA by entering into an agreement with...

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