ERISA

All posts tagged ERISA

Seeking Compensation for Out of Network Claims: A Primer for Providers

by admin on March 11, 2019 No comments

out of network litigationBy: Matt Fischer

Litigation involving out of network claims by providers, also referred to as “non-participating” or “non-par”, continues to be rampant into 2019.  Complexity of plan administration, increased state and federal rule making, and rising costs are resulting in increased litigation.  A recurring issue: unpaid claims disputes.

Many physicians come to the conclusion that some contracts aren’t worth entering.  More and more physicians are opting out of participating provider contracts or have chosen not to participate in the first place.  Reimbursement is usually the prime reason.  The law that controls much of the litigation surrounding these disputes is the Employee Retirement Income Security Act of 1974 (ERISA).  ERISA is a federal law that sets minimum standards for most plans along with fiduciary responsibilities for plan sponsors.  Under ERISA, a “Summary Plan Description” must be created for each plan that sets forth the rights and benefits of each plan member and importantly, how out-of-network reimbursement is determined. 

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adminSeeking Compensation for Out of Network Claims: A Primer for Providers

Employee Files & What to Do With Them

by admin on May 16, 2017 No comments

By: Valery Bond, RHIT

As healthcare professionals, we take pride and care in the detail in maintaining our employee files.  Certain items must be separated from the others, files securely locked and out of reach from co-workers hands.  Personnel’s personal information must be protected.  We all know these things and probably already have a procedure in place for compliance.

Whether your facility has been deemed accredited (Joint Commission, for example) or just starting up, employee files must be maintained, reviewed, audited, and kept according to retention requirements.  Knowing which laws apply aids in keeping your business compliant.  For example, pursuant to ERISA laws, there is no specific time period to maintain records that reflect age, marital status and/or service records.  The Social Security Acts states that employees’ social security numbers must be kept four years from the tax due date or payment of tax, whichever is later.  So, there’s a lot of tracking going on.

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Cigna Lawsuit Loses Texas Case Against Humble Surgical Hospital, Hit with $16 Mil Judgment

by admin on July 13, 2016 No comments

anti kickbackBy: Karina Gonzalez

Cigna recently sued a Texas hospital, Humble Surgical for overpayments.  Humble Surgical is an out-of-network (OON) provider.  Cigna alleged fraudulent billing practices and that the hospital engaged  in a scheme to defraud payors by waiving members’ financial responsibility.

While the suit involved many other  allegations  our article focuses on the arguments Cigna made on failure to collect co-payments, deductibles, and co-insurance and fee-forgiving practices by the hospital.   There were several other issues raised that are important to various practices that Cigna has engaged in with out-of-network providers.  Cigna has consistently audited South Florida providers alleging failure to collect patient financial responsibility or fee-forgiveness, then informing the provider that it was not entitled to any reimbursement because these practices fell within the exclusionary language of the member’s plan.

The suit brought under federal law, ERISA and also Texas common law seeking reimbursement for all overpayments. Cigna was seeking equitable relief including imposing a lien or constructive trust on  fees paid to the hospital.

Humble Surgical counter sued against Cigna for  nonpayment of patients’ claims, underpayment of certain claims and delayed payment of all claims in violation of ERISA, including other causes of action. Here’s what happened: 

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adminCigna Lawsuit Loses Texas Case Against Humble Surgical Hospital, Hit with $16 Mil Judgment