Supreme Court to rule on federal employee health insurance

Supreme Court to rule on federal employee health insurance

The US Supreme Court [official website] on Friday granted certiorari [order, PDF] in Coventry Health Care of Missouri, Inc. v. Nevils [docket; cert. petition, PDF] to determine if health care companies are precluded from recouping reimbursements under the Federal Employee Health Benefits Act (FEHBA) [5 USC 8902]. At issue is whether the supremacy clause would bar an insurance provider from recovering costs issued to an employee under FEHBA even though the wording of the act prevents state or local laws from intervening in the contract between the Office of Professional Management and the insurance provider. The case involves Coventry health care, which sought reimbursement of medical expenses after a covered employee won a lawsuit against the driver who caused his accident. The state court ruled [opinion, PDF] that the health insurance provider was barred from seeking reimbursement. However the issue of the supremacy clause was unclear as it would significantly alter the way insurance companies provide for federal employees.