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December 18, 2020 On Thursday, in the Eastern District of Michigan, Judge Stephen J. Murphy denied United Healthcare a motion to dismiss an action on grounds of preemption brought against the defendant by a group of hospitals providing emergency medical services who alleged the defendant paid less than market rate for the medical services rendered to customers of the insurance company.
The plaintiffs argued that the defendant had an implied contract with the hospitals to pay “reasonable market value” for the emergency medical services rendered. The hospitals sought damages equal to the “reasonable market value” of the services rendered minus the amount the defendant already paid for said services plus 12 percent interest under the Michigan Prompt Pay Act (MPPA). The defendant proffered that its plans were covered by the Employment Retirement Income Security Act (ERISA) and thus preempted the plaintiffs’ recovery under MPPA. Specifically, the de