Tyler Hospital Sues Aetna, BCBSTX, Cigna Over PPO Designation

One of the largest hospitals in East Texas this week filed a $1 million lawsuit against three of the big four health insurance plans in the state: Blue Cross Blue Shield of Texas, Aetna, and Cigna Healthcare of Texas.

Tyler’s KLTV reports that the East Texas Medical Center Tyler alleges that the companies excluded the provider from their preferred provider networks, creating “serious and negative consumer impact.” The hospital says the plans are in violation of the Texas Insurance Code, which calls for “a fair, reasonable, and equivalent opportunity to apply to be and to be designated as a preferred provider.”

The news station reports that ETMC is the only hospital providing psychiatric services for pediatric patients, and one of two in Smith County offering inpatient psychiatric services for adults. None of the insurance plans commented for the story.

Posted in Insurance/Benefits.