NU Online News Service, Feb. 12, 11:19 a.m. – Texas Attorney General John Cornyn is suing PacifiCare of Texas Inc. in state court in Austin, Texas, over what he alleges are problems with unpaid claims.
PacifiCare of Texas, a unit of PacifiCare Health Systems Inc., Santa Ana, Texas, uses large group medical practices, or “delegated networks,” to help administer coverage. Three of the group practices in its network have filed for bankruptcy, Cornyn says.
Cornyn is accusing PacifiCare of Texas of failing to ensure that the group practices pay bills from hospitals, clinics and outside doctors quickly enough to comply with state prompt-payment law. PacifiCare has a responsibility to complying with the prompt-payment law, even when it turns administrative responsibility over to delegated networks, Cornyn says.
Cornyn is asking the state court for an injunction requiring PacifiCare to comply with state laws, and he is also asking the court to hold PacifiCare liable for any harm caused by violations of the state prompt-payment law.
PacifiCare responded with a statement expressing shock and disappointment at Cornyn’s suit.