Northrop Grumman Must Face Suit Over Employee’s Medical Bills

Northrop Grumman Corp. must defend a medical provider’s lawsuit seeking more than $30,000 for a surgical procedure and related services provided to an employee.

The aerospace and defense company sought to have the case dismissed, pointing to a provision in its health plan prohibiting workers from assigning their right to sue over benefits to their doctors. The provider, Keith Feder MD Inc., said Northrop waived its ability to rely on the anti-assignment provision by communicating with it about the patient’s medical bills without ever mentioning this aspect of the plan.

Judge Josephine L. Staton sided with the provider in a ...