Health Net Sued Over Veteran Care

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Health Net Inc. has been sued by hospitals in Michigan and Vermont that claim the managed care provider owes more than $100 million for veterans’ medical care.


Northern Michigan Hospitals Inc., of Petoskey, Michigan, and Gifford Medical Center Inc., of Randolph, Vermont, said they are entitled to the reimbursements under the Tricare program, which covers retired military personnel and dependants, Bloomberg News reported.


Woodland Hills-based Health Net has failed to pay in violation of its contract, the hospitals said in the complaint filed Jan. 19 in federal court in Wilmington, Del. The suit asks for class-action status and restitution for hundreds of hospitals. Health Net is one of three U.S. health insurers that offer the Tricare program.


Health Net spokesman David Olson said Monday that the company hasn’t seen the complaint and couldn’t immediately comment.


Health Net shares were down 18 cents to $47.97 in midday trading.

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