Friday, January 12, 2007
Awaiting the outcome of a lawsuit, the New Jersey Superior Court has ruled Vanguard Anesthesia Associates must stop demanding money from customers of Horizon Blue Cross and Blue Shield of New Jersey through a apply called "balance billing." The ruling came after a 90-minute trial Tuesday in Morristown before Superior Court Judge Catherine M. Langlois.
In a lawsuit filed by Horizon, Vanguard is accused of inappropriate direct billing of Horizon's insurance subscribers and threatening subscribers' credit for nonpayment of debts. Many of the pretentious subscribers received medical services at the Kennedy Surgical Center in Washington Township, and at South Jersey Hospital in Vineland and Elmer. Since last fall, Horizon received a predictable 2,000 complaints from subscribers about the billing and threats. The company filed for court act on Dec. 14, 2006.
"It couldn't have gone better for us," said Dan Emmer, spokesman for Horizon, referring to the court's decision on Tuesday. He called the court's injunction and other instructions for Vanguard to restore money to Horizon customers "an extraordinary move." Vanguard claims it is permitted to an additional $4.3 million from 8,000 Horizon subscribers for anesthesia services from Jan. 1, 2004 through April 30, 2006.
"Balance billing" occurs when a health-care supplier charges patients the difference between the amount paid by an insurance company and the actual cost of the medicinal service. Horizon says its accord with Vanguard prohibits balance billing. While proceedings are still pending, Horizon subscribers can stop worrying about demands for more money from Vanguard, Emmer said.
Horizon Blue Cross Blue Shield of New Jersey, headquartered in Newark, is New Jersey's largest health insurer, providing treatment to more than 3.2 million people. It is an autonomous licensee of the Blue Cross Blue Shield Association.
posted by renaa
@ 2:29 PM
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