GS Labs Fails in Suit Against Insurer for Covid-19 Testing Pay

Medica Insurance Co. escaped a diagnostic testing laboratory’s suit to collect full payment for members’ Covid-19 tests, after a federal court in Minnesota determined that the CARES Act doesn’t allow the labs’ claims.

Nebraska-based GS Labs Inc., which opened 50 Covid-19 testing sites throughout the US in 2020, claimed that the federal law obligated the insurer to reimburse it at the cash price posted on its public website. But the Coronavirus Aid, Relief, and Economic Security Act doesn’t give health-care providers a private right of action against insurers, the US District Court for the District of Minnesota concluded.

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