ETMC Tyler sues 3 insurance carriers for $1M
By Tyler Morning Telegraph
June 2, 2015 at 5:35 p.m.
Updated June 2, 2015 at 5:35 p.m.
East Texas Medical Center in Tyler filed a lawsuit Tuesday seeking damages of more than $1 million against three of the largest health insurance carriers in East Texas. The 15-page suit claims the hospital’s exclusion from the companies’ preferred provider networks have created “serious and negative consumer impacts.”
The insurance companies are: Blue Cross and Blue Shield of Texas, a division of Health Care Service Corporation; Aetna Health, Inc., Aetna Life Insurance Company; Cigna Healthcare of Texas, Inc.; and Cigna Health and Life Insurance Company, according to the Tyler Morning Telegraph.
ETMC Tyler alleges that its exclusion lessens consumers’ choice of health care providers and increases health care costs for some patients.
The suit also states that the exclusion of ETMC Tyler goes against the provisions of the Texas Insurance Code. Chapter 1301 of this code requires insurance companies to provide “a fair, reasonable, and equivalent opportunity to apply to be and to be designated as a preferred provider.”
The code states that carriers “may not unreasonably withhold a designation as a preferred provider.”