SAN FRANCISCO — In a unanimous decision that could have ripple effects across California's health care industry, the state Supreme Court has ruled that health plans like Aetna and Blue Shield can be sued over unpaid medical bills even if the plans passed financial responsibility to third parties.

The court's opinion Monday in Centinela Freeman v. Health Net of California is a blow to health care plans and the so-called "risk bearing organizations," or RBOs, that they regularly contract with in order to share the financial risk they take on in covering patients' emergency medical expenses.

Continue Reading for Free

Register and gain access to:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Ben Hancock

Ben Hancock is the Data Editor for ALM Media and Law.com. He is based in San Francisco.