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Insurer Needn't Cover $5M HIPAA Probe Costs, 9th Circ. Says

Law360 (March 7, 2018, 7:55 PM EST) -- The Ninth Circuit on Wednesday upheld a California district court’s finding that Allied World Assurance Co. does not have to cover the $5 million Millennium Laboratories racked up defending against a federal Health Insurance Portability and Accountability Act investigation.

In an unpublished decision, the panel agreed with the lower court that the allegations in the HIPAA probe were related to earlier claims against Millennium and therefore excluded from coverage, rejecting the California drug testing laboratory’s argument that the U.S. Department of Justice had made seven new,...
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